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CMO PUBLIC COMPANY LIMITED
4/18-1
9, Soi N
uanchan 56, N
uanchan, Buengkum, B
angkok 1023
0 Thaila
nd
Tel. 6
62 08
8 388
8 Fax.
662 0
88 38
48 w
ww.cmo-group.com
PassionDRIVES
US
ANNUAL REPORT 2018 CMO PUBLIC COMPANY LIMITED
Part 01Message from CEO 4
Message from the Chairman 6
Board of Directors 8
Management Team 10
Financial Highlight 12
Part 0313 CertificationoftheAccuracy of Information 118
14 Financial Statements 120
Part 04Appendix1 Information of Board of Director andExecutiveManagement 176
2 InformationofSubsidiaries 179
Part 0201 PolicyandBusinessStructure 14
02 CompanyandSubsidiary’s
RevenueStructure 20
03 Risk Factors 50
04 General Information 56
05 Shareholders 62
06 DividendPolicy 64
07 ManagementStructure 66
08 CorporateGovernance 78
09 CorporateSocialResponsibilities 92
10 Internal Controls and Risk Management 104
11 RelatedPartyTransactions 108
12 Management’sDiscussionandAnalysis 112
Content
Message from Mr. Sermkhun Kunawong,Chief Executive OfficerCMO Public Company Limited
Dear all shareholders and clients, 2018 was another fine year of event business. Overall, the business was growing particularly in the entertainment sector such as concerts, parties, and various showbiz including marketing events. It was clearly seen from the organization of varieties of big expos all year round as Money Expo, House and Condo Expos as well as launch events of new products such as cosmetics and skin care, real estate, vehicles, etc.Last year, the Company took part in creating a lot of big events. The greatest event was the opening of ICONSIAM by the end of the year. ICONSIM is the mega city project of futurist living, an iconic landmark of Thailand’s eternal prosperity on the Chao Phraya River, occupying over 750,000 sq.m. space. The activities and performances were the best of Thailand and of the world, and most spectacular as never before. From the fullest effort corresponding to the growth of event industry coupled with good capital management made 2018 yield satisfactory performance.
The key factor of the Company’s accomplishments was the creative power. Creativity is what we believe in as the origin of our business. Every work procedure has been scrutinized from boundaryless creative thinking. Accordingly, it can be said that creativity is the driving force of CMO. It is in consonance with the Company’s CMO: Creative Management Organization. That is, the organization of creative management Therefore, we build the working office atmosphere differently from others’ in order to stimulate creative power. We let all staff work as “Work Live Play” which is work as play as not having to work. When they are relaxed, the creative work will spontaneously be generated.
As for 2019, our goal is to remain the leader of event business as number one agency of the country by keeping the existing client base and developing new businesses in harmony with trends that respond more to life style of new generation. The Company has launched new business: “CM Digital” to provide services on Digital Solutions and Data Management for all types of events. Its operation covers organization of conferences, exhibitions including museum and learning centers by bringing digital technology to create new dimensions to event organization and experiences for
clients, both governmental and private sectors. All these will correspond with current digital trends as Cloud Technology, Big Data and Internet of Things. The connection of Internet to several devices to enable data receiving-transmitting so as to control or take data from those devices to make analyses for different usage formats. The services of CM Digital include Varp Event providing registration system for game application to provide enjoyable participation in activities of the events, conferences. Different formats of technologies will be adapted to appropriate sizes and types of the events, to facilitate and impress the participants. In addition, the organizers or brand owners can use the data for evaluation as well.
Furthermore, the Company also emphasizes on domestic expansion and the extension of business for income stabilization including continuously identifying business alliances to support business expansion of the Company. At the same time, it will be the year of realizing foreign marketing which we still emphasize on CLMV countries (Cambodia, Laos, Myanmar and Vietnam). Consequently, we commenced 2019 with the lead event “The 1st Yangon International Motor Show 2019”. It was the first motor show of Myanmar that PM Center, our subsidiary was entrusted by Grand Prix International PCL. as official contractor of visual, light and sound systems, and truss structure. Moreover, PM Center also supervised light and sound systems of the opening ceremony, and visual, light and sound systems and truss structure of BMW and Scania Booths.
Lastly, I, on behalf of the Executive Committee and all staff, wish to thank you, our clients, business alliances and shareholders who support and trust our business operation and always be parts of the Company’s success. I wish also to thank staff of all sections who dedicate to the fullest extent in their works. I wish to request all of you to be confident that I and the Executive Committee will collaboratively operate under good governance and Company’s policy to lead CMO to an outstanding position in ASEAN market and to build endless reputation as the market leader.
Mr. Sermkhun KunawongChief Executive Officer
4 5Annual Report 2018 CMO Public Company Limited
Message from Ms. Anusara Chittmittrapap, Chairperson of the Board of DirectorsCMO Public Company Limited
Dear all shareholders and clients,
2018wasanotheryearofgoodsuccess.TheCompanyoperatedbyfollowingthestrategyonkeepingthepositionofleaderineventbusinessasnumberoneagencyofthecountry.Undertheconceptof360oExperienceCreator,CMOisthecreatorofexperiencesviafullcommunicationwithendlesscreativity.Inthepastyear,theCompanystillhadperformanceatsatisfactorylevelaswellasconsecutiveinvestmentplansforbusinessdevelopment.Insodoing,itistoemphasizethattheCompanydoesnotonlyworkoneventmanagement,butalsohasthecapabilityinmanagingotherbusinessesthatgrowaswell.Inaddition,withover30yearsofprofessionalexperiences,CMOrealizesthatunceasingself-developmenttokeepupwithchangesisamust.
Asaresultofworkingtothefullestcapabilityinharmonywiththegrowthofevent industry coupledwith good capitalmanagementmade 2018 yield satisfactoryperformance.TheCompanyearnedatotalrevenueof1,449.10millionBahtwhichequaled86.86millionBahtor6.38%increase,comparingwithlastyear’s.Moreover, theCompany has policy onmaking a high yield for shareholders consistently. ThisisconsideredamajormissionthattheCompanyshallpaydividendtoshare-holdersregularly.
For 2019, theCompany stillmove forward in running business consecutively. The Company will extend the scope of business emphasizing on domestic expansionthatshallgeneratestableincomeincludingidentifyingbusinessalliances to support the business expansion of theCompany continuously. Furthermore, theCompanyhaslunchednewbusiness:CMDigitaltosupportthegrowingonlineworldthatplaysmoreandmoreroleindailylivingofpeople.Simultaneously,itwillbetheyearofmoreprominentforeignmarketingthattheemphasisisstillonCLMVcountries(Cambodia,Los,MyanmarandVietnam).
Lastly, onbehalf of theBoardofDirectors, Iwish to thankExecutiveCommitteeandallstaffwhoconcentratedanddedicatedtokeepandexpandtheCompany’s base continuously, and all shareholders and clientswho support and trust in businessoperationoftheCompany,andalwaysbepartsoftheCompany’ssuccess.IwishtorequestallofyoutobeconfidentthattheCompanyshalloperateprudently, cautiouslyandadhere toCodeofEthics to improve thequalityconsecutively forultimatebenefitofallconcerned.
Ms. Anusara Chittmittrapap,Chairperson of the Board of Directors
6 7Annual Report 2018 CMO Public Company Limited
Board of Directors
Mr. Netipong Wichitwechkarn • Director • AuditCommittee • IndependentDirector
Mr. Chalay Kunawong • Director
Mr. Upathum Nisitsukcharoen • Director
Mr. Sermkhun Kunawong • Director • ChiefExecutiveOfficer
Mr. Anant Gatepithaya • Director • Chairmanofthe AuditCommittee • IndependentDirector
Miss Anusra Chittmittrapap • Chairmanoftheboard • AuditCommittee • IndependentDirector
Management TeamAs at February 2018
Miss Piyamart Yongsirichaisakul Chief Financial Officer
Miss Thanaporn PhetluanManaging Director
Miss Chanasa DermsombullManaging Director
Mr. Mongkol SilthumpitugManaging Director
Miss Wanna Issarangkul Na Ayutaya
Managing Director
Ms. Jutiporn MingkwanrungruengManaging Director
Mr. Sermkhun KunawongChiefExecutiveOfficer
Financial Highlight
Summary of Financial Ratio
Consolidated TheCompany
Unit 2015 2016 2017 2018 2015 2016 2017 2018
Liquidity ratio:
Liquidityratio times 0.62 0.61 0.72 0.76 0.77 0.97 0.99 1.03
Accountreceivableturnover times 4.51 4.22 4.21 4.14 3.42 3.41 3.33 4.08
Averagecollectionperiod days 80.95 86.54 86.60 88.19 106.82 106.97 109.58 89.52
Accountpayableturnover times 9.42 8.56 8.55 9.26 6.14 5.86 5.28 6.23
Averagepaymentperiod days 38.74 42.65 42.68 39.43 59.48 62.25 69.17 58.61
Profitability ratio:
Grossprofitmargin (%) 21.33% 16.81% 23.41% 24.07% 16.34% 13.50% 22.96% 23.84%
Operatingprofitmargin (%) 6.47% 0.78% 9.39% 10.13% 2.33% 8.93% 12.76% 5.94%
Netprofitmargin (%) 2.52% -2.67% 3.20% 4.48% -0.38% 6.60% 9.16% 1.54%
Returnonequity (%) 7.75% -7.04% 9.32% 12.99% -0.97% 11.37% 13.58% 2.60%
Efficiency ratio:
Returnonasset (%) 2.92% -2.71% 3.69% 5.61% -0.38% 5.65% 7.18% 1.37%
Totalassetturnover times 1.16 1.02 1.15 1.25 0.98 0.86 0.78 0.89
Financial ratio:
Debttoequity times 1.66 1.60 1.52 1.31 1.58 1.01 0.89 0.90
Interestcoverageratio times 2.55 0.33 5.04 6.05 0.94 4.03 5.22 2.86
Earning(loss)pershare baht 0.139 (0.180) 0.140 0.210 (0.013) 0.170 0.210 0.04
Summary of the Company and Consolidated financial Highlight(UnitThousandBaht)
Consolidated TheCompany
2015 2016 2017 2018 2015 2016 2017 2018
Income Statement:
Revenuefromservice 1,357,653 1,199,653 1,362,237 1,449,095 648,718 637,646 575,561 626,784
Totalrevenue 1,365,914 1,404,291 1,376,442 1,458,245 665,690 720,250 627,048 667,089
Costofservice 1,068,010 998,015 1,043,273 1,100,353 542,715 551,582 443,397 477,336
Grossprofit 289,643 201,638 318,964 348,742 106,003 86,064 132,164 149,448
Sellingandadministrativeexpenses 210,012 205,901 205,214 211,079 107,847 111,727 110,191 152,495
Interestexpenses 34,442 27,992 25,397 24,279 16,100 14,140 14,073 13,034
Taxexpense 18,533 1,585 22,725 26,825 1,512 736 6,691 14,549
Netprofit(loss) 34,237 (32,040) 43,573 64,958 (2,484) 42,065 52,696 9,675
Balance Sheet:
Currentasses 336,328 324,104 406,663 395,196 276,499 318,965 312,559 318,803
Totalassets 1,172,551 1,180,546 1,180,335 1,156,922 660,233 744,085 733,452 707,599
Currentliabilities 543,266 534,025 561,219 519,139 358,807 329,846 314,272 309,654
Totalliabilities 730,913 725,737 712,835 656,859 403,966 374,134 345,292 335,310
Shareholders’equity 441,638 454,809 467,500 500,063 256,267 369,951 388,160 372,289
Issuedandpaid-upsharecapital 194,333 255,463 255,463 255,463 194,333 255,463 255,463 255,463
Financial Ratios:
Grossprofitmargin(%) 21.33% 16.81% 23.41% 24.07% 16.34% 13.50% 22.96% 23.84%
Operatingprofitmargin(%) 6.47% 0.78% 9.39% 10.13% 2.33% 8.93% 12.76% 5.94%
Netprofitmargin(%) 2.52% -2.67% 3.20% 4.48% -0.38% 6.60% 9.16% 1.54%
Returnonequity(%) 7.75% -7.04% 9.32% 12.99% -0.97% 11.37% 13.58% 2.60%
Earning(loss)pershare 0.14 (0.18) 0.14 0.21 (0.01) 0.17 0.21 0.04
Liquidityratio(time) 0.62 0.61 0.72 0.76 0.77 0.97 0.99 1.03
Debttoequityratio(time) 1.66 1.60 1.52 1.31 1.58 1.01 0.89 0.90
12 13Annual Report 2018 CMO Public Company Limited
01POLICY ANDBUSINESSSTRUCTURE
1.1 Vision & Mission Vision“CMO Is ASEAN leading experience communication creator with world’s class craftsmanship”
Mission“We, CMO, generate impactful experience through holistic communication with infinite creativity to be your trusted solution”
1.2 The History and Important ChangesCMOPublicCompanyLimitedisfoundedinJune5,1991bytheleadofMr.SermkhunKunawongandMrs.SureeKhunawong.ThecompanyisrunningthebusinessforEventManagement;Public Event,Meeting, Incentive, Convention & Exhibition(MICE),Exhibition&TradeShowandMarketing&Promotion.Thecompany’scapitalforthefirstregistrationwasamountedBaht1millionandthebusinessstartedwithonly4employees.ThehistoryandimportantmovementsoftheCompanyGroupispresentedbrieflyasfollowed;
New Mazda 2 LaunchbyCMO
1990PresentationMediaSuppliesCo.,Ltd.(nowitisP.M.CenterCo.,Ltd.)wasestablishedtoprovideEquipment RentalServiceforperformancesandpresentationofTheEyesCo.,Ltd.
2003TheCompanyGrouphadradicallychangeditsfundingstructureandshareholdingforapreparationtoregisterinMarket forAlternative Investment (or “MAI”).Theregistered capital was increased from Baht 8 million toBaht59millionandBaht150millionrespectively.Inaddition,theshareholdingstructurewasalsochangedinwhichthecompanyheldthesharesof“PM”and“TheEyes” for 99.997%and 99.84% respectively.S.CubicCo., Ltd. became the large shareholder oftheCompanyGroup.C.M.OrganizerCo., Ltd.was transformed into a public company limited and renamed“C.M.OrganizerPublicCompanyLimited”
1991C.M.OrganizerCo.,Ltd.wasestablishedtoprovideanEventManagementService. The companywastrulyoneofthepioneersinsuchbusinessinThailand.
2004PMCenter‘scapitalstructurehasradicallychangedfromBaht39.90MilliontoBaht135MillionofpaidupcapitalwhichCMOrganizerheldthesharesof“PM”for99.99%and increasedcapitalpaidfor theEyesfrom Baht 5 Million to Baht15 Million which held the sharesof“theeyes”for99.95%
2008TheCompanyhasexpandedanewbusinessinlineofUtilityServiceProviderbyheldtheshareofExpositionTechnologyCompany Limited for 40%.Moreover,CMOGrouphasagreatsuccessfulofThaiPaviliontostandupfrontof102countrieswithSilverAwardinThemeandConceptionfromBureauInternationaldesExpositions:BIEinWorldWaterExposition2008“ExpoZaragoza2008”,Zaragoza,Spain
2014CMO Group moved to “Bangkok Creat ive Playground”.Thisisthegreatsynergyofpeopleandpotentialofbusinesstoberecognizeinwiderangeofclients,partnerandsuppliers
2016TheCompanyhaspaid-upcapitalto255,462,733bahtbyofferingtotheexistingshareholders.
2018CMDigital”isanewbusinessunitinCMO,forsupportdigitalsolutionsanddatamanagemnetservicessuchasregisterationsysteminseminarsandeventswithverioustechnologies.
2011TheCompanyhadchangecompanynameto“CMOPublicCompanyLimited”Toprepareforanexplanation tonewbusinessandnewmarketbothinboundandoutbound,AECmarket.
2015TheCompanyhasexpandedtheinvestmentforopening the new subsidiaries,MuseCorporation Co.,Ltd providesmusicandentertainmentservicesandalsoopen “Imaginia Playland” in Augustwhich is the interactive playland for children. Furthermore, the companyhasnewbusinesspartners,CMOSHOWCORPLTD.whichcreatedandorganizedacontemporary culturalshow“HimmapanAvatar”thatthecompanyheldtheshares70%and50%respectively.
2017ThecompanyhasestablishedtheImaginiaPlaylandDepartment,which hasbeen transformed into theImaginiaCo.,ltdwith10millionBahtcapital.Besides, the company plans to expand this business by establishingmorebranchesinAsia.
1986Mr.SermkhunKunawongisafounderofTheEyesCo.,Ltd.Thecompanywasthefirstoneamongothers.Itprovidesaserviceformultimediaandmulti-vision.Atthattime“TheEyes”wasoneofthebiggestmultimedia manufacturersinThailand.
The History and Significant Movements of the Company Group
1986
1990
1991
2003
2004
2008
2011
2014
2015
2016
2017
2018
16 17Annual Report 2018 CMO Public Company Limited
1.3 Organizational and ownership structure
The company has a policy to invest in core business involved in eventmanagement and its other connected business by considering theirpotentiality.Byassigninga representative tobeadirectorormanagementexecutiveof thesubsidiaryand assosiatedcompanies,thecompanycanmanage,controlandbeconfidentthatthetargetwillbeachieved.
The following diagram displays our current organizational and ownership structure as of 31 December 2018.
99.99%
39.29%40%
PM Center Co.,Ltd.
Exposition Technology Co.,Ltd.
CMO Public Company Limited
99.95%The Eyes Co.,Ltd.
56.99%Momentum S Co.,Ltd.69.99%
Muse Corporation Co.,Ltd.
99.99%Imaginia Playland Co.,Ltd.
Muse Corporation Co.,Ltd.
Sephora Central Bangna Store OpeningbyMUSE Corporation
18 Annual Report 2018
COMPANY AND SUBSIDIARY’SREVENUE STRUCTURE
BOYdKO50th #1 Rhythm & Boyd The ConcertLighting,LED&SpecialEffectoperatedby PM Center
02
2.1 Revenue StructureThe revenue and customer structure of the group in 2015 – 2018 has been declared separately as following :
Group of Company Revenue divide by Company Business Type
2015 2016 2017 2018
Type of Revenue Amount % Amount % Amount % Amount %
(MB) (MB) (MB) (MB)
Revenuefromeventmanagementbusiness 665.6 49.03% 709.38 59.13% 679.854 49.91% 793.70 54.77%
Revenuefromequipmentrentalbusiness 669.08 49.28% 471.97 39.34% 637.965 46.83% 597.45 41.23%
Revenuefrompresentationmedia
productionbusiness 19.18 1.41% 18.3 1.53% 22.63 1.66% 30.82 2.13%
Revenuefromonlinemarketing 3.79 0.28% - - - - - -
Revenuefromamusementpark - - - - 21.79 1.60% 27.12 1.87%
Total 1357.65 100% 1,199.65 100% 1,362.24 100% 1,449.09 100%
Separated Company Revenue divide by Customer Type
2015 2016 2017 2018
Type of Revenue Amount % Amount % Amount % Amount %
(MB) (MB) (MB) (MB)
CMOPublicCompanyLimited
•Revenuefromgovernment 98.97 14.87% 151.82 21.08% 146.06 23.29% 45.38 6.80%
•Revenuefromprivatesector 549.76 82.58% 485.82 67.45% 429.50 68.50% 581.40 87.16%
•Otherrevenue 16.97 2.55% 82.60 11.47% 51.49 8.21% 40.30 6.04%
Total 665.70 100% 720.24 100% 627.05 100% 667.08 100%
2.2.1 Corporate Marketing Event and Exhibition by CMO Public Company Limited (CMO)
Separated Company Revenue divide by Business Service Unite
2015 2016 2017 2018
Company revenue Amount % Amount % Amount % Amount %
(MB) (MB) (MB) (MB)
CMOPublicCompanyLimited
- Revenuefromcorporate 316.70 47.57% 264.08 36.67% 233.23 37.19% 399.64 59.91%
marketingevents
- Revenuefrompublicevent 77.27 11.61% 63.72 8.85% 39.54 6.31% 47.51 7.12%
- Revenuefromtradeshowand 216.64 32.54% 186.69 25.92% 145.34 23.18% 106.17 15.92%
exhibition
- RevenuefromMICE 0.00 0.00% 4.96 0.69% 9.22 1.47% 0.00 0.00%
- Revenuefromevent 18.12 2.72% 24.99 3.47% 20.49 3.27% 20.37 3.05%
managementfunction
- Revenuefromdesign& 0.00 0.00% 58.97 8.19% 124.22 19.81% 53.08 7.96%
constructionofMuseum
- Revenuefromamusement 20.00 3.01% 34.23 4.75% 3.52 0.56% 0.00 0.00%
- Otherrevenue 16.97 2.55% 82.60 11.46% 51.49 8.21% 40.31 6.04%
Total 665.70 100% 720.24 100% 627.05 100% 667.08 100%
Ford Ranger Raptor launch by CMO
2.2 Business of the Company and its subsidiaries
BusinessofCMOGroupcanbedividedinto8categoriesasbelow; 1. CorporateMarketingEventandExhibition 2. EventEquipmentRentalService 3. MultimediaPresentationService 4. UtilitiesServiceProvider 5. ServicesonTouristAttractions 6. PrivateLifeStyleEventService 7. ConcertwithLight&SoundShowConcert 8. Playland
ThecompanyisrunningthebusinessforEventManagementandoperationsrelatedtothecorebusinesssuchascreativemanagementwithafocusonqualityworkandmeet theneedsof customers.Thecompany’scustomercanbedivided into twomajorgroups,governmentsectorandprivatesectorwhowanttoboosttheirsalesandmarketingtopromotetheirimage.
Corebusinessofthecompanyhasfourmajors’activities; 1. CorporateMarketing&Event 2. Museum&Exhibition 3. National&PublicEvent 4. Meeting,incentive,Convention&Exhibition:MICE
22 23Annual Report 2018 CMO Public Company Limited
Launching new Kubota Diesel Engine at Cambodia by CMO
(1) Products and services
1. Corporate Marketing Event (CME) ThebusinessunitresponsibleforcreativeandmarketingpromotionmanagementtocreatebrandawarenessamongthePrivatesector
Therearemanybusinessunitsresponsibleforprovidingadvice,creativework,andorganizing event activities for clients in private sector. Thesebusiness units areknownamongtheclientsunderthenameofCorporateMarketingEventBusinessUnit(CME).AllCME’sbusinessunitsareabletocreateandorganizetheeventactivitiesinresponsetoeachobjectiveofthecustomerneedswithcomparablequality.Theyareself-managedunitsothattheycanresponsetocustomer’sneedontime.
TheworkofCMEbusinessunitsinvolvesthecreationofeventactivitiesforclientsinorder tocreatewidelymarketingawarenesswithdistinctivecharacteristicsand creativity.Theseunitsattempttocreateexperiencefortheclients’targetgroupinordertobringoutpositiveemotionandbrandrecall.Theymustalsocontinuouslyemphasizeandenhancetheimagecreatedbytheclientsamongthebrandandtargetgroup.Theeventsmustbeutilizedtobringaboutmaximumeffectivenessandefficiencytotheclients’productsandservices.Asaresult,brandexperienceisestablishedinthecustomermindintheformsofliking,preference,desire,andneedstopossess,whichwillfinallyleadtothepurchasedecision,increasingsalesvalue,andbrandloyalty.
TheprofessionalismofCMEbusinessunitscancreateconfidenceonthefoundation of over 20 years, aswell as the strength in their production skills, expertise in presentation,andabilitytocreatemodernworktobeabletoreachthetargetgroups.
Theseachievementscanbereflectedfromthefamousandsuccessfulperformanceintheyear2018asfollows: - RaptorLaunch - Home Pro Expo #27-28 - Home Pro Fair - MazdaASEANDesignForum2018 - SuzukiPressConference - MichelinVanilla - MiA2SeriesandMi8Launch - MIE7SLaunch - PerfectWowDesls - CompactSUV“NewMazdaCx-32018Collection”Launch - CloudBusinessService
2. Museum and Exhibition Management Exhibitionfairbothpermanentandtemporaryarethemarketingcommunicationtoolsbyconveydifferencepurposedependsonproject’sobjective.Team’saccountabilityissettheefficiencycommunicationprocesstoclientandaudiencefromourexpertiseviacommunicationstrategy,interiorandexteriordesign,displaytechnologysuchas“GhostEffect”orHologram,PanoramaScreentechniqueandSpecialEffectDome.
Theexhibitioncandivideinto2types. 1. Educationexhibition,thispurposeisstimulatingtheaudienceslearning
aboutknowledgeandprogressofthem.Moreover,theexhibitionexpectstoincreasevisionandattitudeofaudiencesandbeingapplyindailylife
2. Tradeexhibition,thispurposeisshareinformationandintroduceexhibitor’sproductinthesametime.
ForMuseum,itispermanentexhibitionwhichdesigninmanyaspectssuchasconcept, theme,interiorandexterior.Thedesignerhastosetallofaspecttoharmonizewithmuseum’sobjective.
The museum and exhibition management of the company in the year 2018 as follow : - KhanomLearningCenter - SKIIBoothatSiamParagon,CentralLadprao,CentralPinklao,Central
World,CentralRama9,TheMallBangkapi - Grand Opening EXIM Bank Lao - ThaiLifeInsurance@ThailandSmartMoney2018 - PerfectWowDeals - BANDAINAMCOEntertainmentBoothatThailandGameShowBigFestival
2018 - TRUEBoothatThailandDigitalBIGBang2018 - RebrandingMuanchonCoffeeandOpeningBrandPresenter - PrepertyPerfectCondooftheyear2018 - BKI@MoneyExpo2018 - BusinessOpportunityZone@AmwayExpo2018 - BangkokfinTechFair2018
24 25Annual Report 2018 CMO Public Company Limited
Bangkok Bank’s pavilion at Money Expo 2018
by CMO
The Celebration of MEGA FoodWalk Openingby CMO 3. National & Public Event
ThePubliceventissetforthecampaignofeachclientwhichhasspecialcampaignintheirproduct.Companies’clientsarebothprivatesectorsandgovernmentdepartmentsorministry.Thekindofthiseventwillsetinashorttimeperiodandneedparticipationofpeople.Normally,theNationalorPublicEventwillsetforaspecialoccasionorannually.Theeventiscombinedbyalotofactivities,varietiesofthemeandproduct.
BesidetheNationalandPublicEvent,companyisalsocreateeventinstyleofsponsor eventwhichownbycompanyandgetsponsorfromothercompanythatwishtojoint.Theentertainmenteventof thecompanyaimstocombineentertainmentwith theimageofcustomerbrand.Forentertainmentevent,thecompanyhasthepolicytocreateowneventreflectinginoutstandinganduniquetosatisfycustomerandsponsor.Theseachievementscanbereflectedfromthefamousandsuccessfulperformanceintheyear2018asfollows:
- ICONSIAMGrandOpening - BoothCountdownLEDSiamParagon - P.E.SGamesChampionship2017 - MEGACountdown2019 - MegaFoodFunFin2018 - JurassicExpo2018:SaveTheDinaosuar - ThaiFexWorldFoodAsia2018 - SamsungStudioGalaxyatParcParagon - SuzukiBoothinMotorshow2018
4. Meeting, Incentive, Convention, Exhibition Business Unit (MICE) TheCompanyisconfidentinpresentingtheservicethroughitsMICEbusinessunitwithFull-functionalService.Theoperationofthisbusinessunitmostlyinvolveswithforeigners.Thetaskdealswiththeorganizingofseminarsamongforeigners,aswellastakingcareofparticipantsduringtheirstayinThailand.Theeventscanberangedfrom the seminars held within a few conference rooms to the world-class seminars joinedbyseveralthousandparticipants.Therefore,theprovisionoftheMICEteam’sfull-functionalservicecoversreception,journeys,accommodation,travelsduringthestayinThailand,aswellasorganizingthemeetings,venuemaintenance,registration,andallthedetailsrelatedtotheconferences.
Competencepersonnel,clarityofworking,andWorld-classManagementareconsidered significantfactorsinadministratingtheMICEteam.Additionally,beingtheleaderoftheMICEbusinesstogetherwithcompetitiveadvantageobtainedfromtheaffiliatedcompanies, theCompany’sMICE team is equippedwith instrument, technology,andpotentialthatissufficienttofullyaccommodatethebusinessopportunities.Thesuccessfulperformanceintheyear2018asfollows:
- AmwayRecognitionDay2017-201 - 16thAnniversaryofJoin&Coinand19thMDPAward - Thailand Domestic Mice Mart 2018 - Grundfos25thAnniversaryCelebration - SCBSMENewYearStaffParty2018 - LINE TB 2018 - MazdaDealerConference - MThaiTopTalkabout2018 - TheSpiritofEnterprise(SOE)Award2018 - MOUceremonyofPropertyPerfectandHongkongLand - PropertyPerfectandSekisuiCemical(JapanXPressconference - Minor50thAnniversary - Meet&GreetwithShayGiven
26 27Annual Report 2018 CMO Public Company Limited
Samsung Stuido Galaxy at Parc Paragonby CMO (2) Marketing and competition situation
A. Marketing policy � Marketing strategy TheCompanyhasmarketingstrategythatstressesonqualityandfull-functionservices for different types of businesses. The followings are the keymarketing strategies: 1. Provision of full-function quality servicesAfterallthistime,theCompanyemphasizesonprovisionofservicesfororganizingeventsofvariousformatsforbothgovernmentalandprivatesectorsofqualityandfull-functionnature.TheCompany’sworkingteamsworkcloselytogetherwithourclientsfromthebeginningtotrulyunderstandtheobjectiveandneedsofourclients.TheCompanywillsetattractiveformatsofshowactivities,createpresentationformatsandfeasibilityofeventorganizingincludingfindingeventvenues,provisionofequipment, performancesupporting teamsaswell asarranging forother activitieswhichare harmoniousandsuitablewiththeobjectivesoftheevents.Thus,theCompanyappliesqualitycontroltoeverysingleprocedureinordertopreventmistakesandtocreatetheeventsthatmeettheobjectivesofclients.Consequently,theCompanyearnedwellacceptanceandtrustfromclients.TheactivitiesorganizedbytheCompanyarenovelandconveytheconceptspresentedaccordingtotheneedsofclients.
Furthermore, tomake the events of clients accessible to the target groupmoreefficiently,PRserviceisaddedtocommunicate,build imageandreleasenewsofclients’events.Thisisanaddedvaluetoorganizingtheclients’eventsthatmakesclientssatisfyintheoverallservicesoftheCompany,andalsomaketheCompanycapableofsupportingandorganizingallformsofevents.Therefore,theCompanyestablishedsubsidiariesunderCMOGrouptosupportworkwithintheGroup.Theoperationof thesubsidiaries includescompleteservices ranging from light, colorandsoundequipmentforallkindsofshows,productionofspecialeffect,VDOs,and multimediaforactivitiesandadvertisement,buildingofstagestructure,electricsystem,watersystem,airpumpandmediacablewiring.Thus,makeCMOGroupcapableofprovidingrealfull-functionservices.
2. Provision of services covering diverse events Companyprovideseventmanagementthatcovers4kindsofbusinesses: 1. CorporateMarketing&Event 2. Museum&Exhibition 3. National&PublicEvent 4. Meeting,Incentive,Convention&Exhibition:MICE
TheCompanyisregardedasa leadingoperator ineventmanagementofallsuch4 kinds of event. As a result, theCompany hasmarket opportunities in event managementscoveringallkindsofevents.
AstheCompanyplacesimportanceonaccountmanagementandcustomerservice,therefore,theCompanyaddsapolicyonlong-termaccountmanagementsystem.SuchsystemisbeneficialtoboththeCompanyandclientsbyincreasingwelltherevenuestabilityandreliabilityofclientsinprofessionalpersonnel.Thisisbecause,thesystemcoversthemodeofoperationfromkeepinggoodrelationship,servicingclientsbyproficientpersonnelincludingstrictnon-disclosureofmarketingsecretsofeachclientwhichisthepersistentcrucialprinciplepractice..
3. Develop work system to international efficiency standardIn addition to thepolicyon full function service strategy, all servicesmustbeof international standardwhich iswidely accepted. This is a very importance issuethat isemphasizedbytheCompany.Astheorganizationofeacheventoractivityinvolvesvastnumberofpeople,iftheoperationdoesnotfollowstrictlytheregulationandstandard,therewillbechaosorcarelessnessthatwillbringaboutdamagesanddangerinmanyaspects.
Therefore,theCompanyplacesmajorconcernonproperandprudentworkregulation,andsafetyawarenesssuchaswhenahugestructureforaneventisrequired,theconstructiondesignmustbeverifiedbyengineer,securitystaffstationedatvariouspointsduringeventpreparation,athirdpartyinsurance,etc.
28 29Annual Report 2018 CMO Public Company Limited
Mobile Web App for Jurassic Expo 2018 at MEGA Bangna by CMO
4. Placing importance on corporate human resourceTheCompanyisalwaysawarethatalllevelsofcorporatepersonnelaretheimportantmachinerythatmaketheCompanysuccessfulinbusinessoperationcontinuously. As eventmanagement business is a business that requires knowledge, ability, experiences,creativityandcooperationofstafffromvariousteams.Toorganizeactivities successfullyastargeted,theCompanyemphasizesontraininganddevelopmentofpersonnelby trainingonapplicationofcomputerizedprograms fordesigningandcreatingmedia,andontheuseofpresentationtoolsincludingsendingstaffforstudyvisitsbothin-countryandabroad.Thisistoequipstaffwithinnovativetechniquestoadapttocreativeworkforclients.Moreover,theCompanyalsostressesonbuildinggood internalcorporaterelationshipbyorganizingactivities tounitestafftogetherleadingtothesameoperationaldirection,cooperationandcoordinationtoachievethesetgoals,
� Policy and pricingThepricing foreventmanagementofeachevent issetbyproductioncostwhichcomprisesofproductioncost,productioncontrolmanagementfeeandpresentationcontrolfeeplusprofitmarginataproperratedependingonthenatureofevent,howcreativeandinnovativeitisincludinghowcomplextheproductionis.
� Clients and target groupsTheCompanyfocusesonclientswhoaretheownersofgoodsorproductsthatneedspromotionalmarketingeventsorPRfortheirownproductstoboostsalesvolumeinadditiontoadvertisementviageneralmediaorgovernmentalorprivatesectorsthatneedtopromotegoodimagesfortheorganizationincludingtheeventsoflearningcenter.Theproductownersororganizationsmayspecify the formatsofactivitiesthemselvesandthenhiretheCompanytoimplementorasktheCompanytopresenttheactivityplans.TheCompanyclassifiesclientsinto4categoriesasfollows:
1. State enterprises and governmental agenciesAsgovernmentalsectorhasapolicytopromoteindustrialinvestmentthathasconstantgrowthpotential,sogovernmentalsectoractsasrepresentativeinorganizingactivitiestogiveknowledge,understandingormarketingactivitiestopromotevariousindustries such as tourism industry, and eventmanagement industry, etc.Governmental agenciesthatareresponsibleforpromotionofsuchbusinessareTourismAuthorityofThailand,ThailandConvention&ExhibitionBureau(TCEB)andgovernmentalofficesin respective tourismprovinces,etc.Furthermore,a lotofgovernmentalagenciesorganizePRactivitiesindifferentformats.Theactivitiesofwhichareinlinewiththedutiesofthosegovernmentalagenciesinordertopromoteconcernedactivities.
2. Private business groupPrivatebusinessgroupmostlypreferstheuseofeventssimultaneouslywithothermarketingcommunicationmedia.However,thebudgetspentandfrequencyofeventsarevarieddependingonsizeofbusinessandcompetitioninparticularindustries.Thebusinessindustriesthatuseeventmanagementservicemorefrequentlywithhighbudgetusuallyarethebusinessofhighcompetitionandrapidchangeofconsumer behaviorortechnologyorservicesthathighspeedisrequiredsuchastelecommunication and information technologyofwhich thegrowth rateandmarketcompetitionarehigh.Automotivebusiness industrywithconstantgrowthpotentialandconsumergoodsbusinesssuchasfoodbusiness,cosmeticsbusiness,electricappliancesandotherequipmentregardingdailylivingplaceimportanceonmarketingactivities.SalespromotionandPRtobuildperceptionofconsumersandtargetgroup,includingnewbusinessesdoingmarketinginThailand,thenmarketingactivitiesarehighlyessentialincreatingdirectconsumers’perception.
3. Media agency groupMediaagenciesareconsideredimportantclientsoftheCompany.Duetothefactthatonlyafewfirmsarecapableofprovidingfullservicesoneventmanagementandadvertisement,thereforemostmediaagenciesneedservicesofeventmanagementproviders to createperfect experiences according to the objectives of clients in additiontotheplanningformarketingstrategy.
4. Clients from ASEAN CountriesAstheCompanyforeseenthebusinessopportunitiesfromtheopeningofASEANCommunity,theCompanythensetsworkplantosupportthisnewgroupofclientscontinuously.From thepastperformance, theCompanyhad theopportunities toprovideservicesto3kindsofASEANrelatedclientsasfollows: 1) ThaiorforeignprivatecompaniesbasedinThailandthathaveinvestment
plansinASEAN. 2) PrivatecompaniesinASEANregionsuchascountriesinCLMVgroup. 3) GovernmentalSectorofcountriesinASEANregion.
30 31Annual Report 2018 CMO Public Company Limited
Allthistime,theCompanyhashadtheopportunitiestoprovideeventmanagementservicestocurrentandnewclientsconstantlybythefollowingprocedure:
1. Presentation of performance for client’s selectionTheCompany’soperationteamwillkeeptrackofclients’marketingmovementoriscontactedbyclientstopresenteventsofclientsfromstateEnterprises,governmentandprivatesectors.WhentheCompanyreceivesinformationfromclients,theCompany willprepareworkplanaccordingtotheclients’objectivesoftheevents,thenpresentseventsforclients’selection.IftheCompanyisselectedasserviceprovider,theproduction teamoftheCompanywillcoordinatewithclientstoimplementfurtherprocedure.
2. Good customer relationshipFollowing themarketingpolicy that focuseson creatingquality events to satisfyclients,theCompanycanbuildandkeepcontinuedgoodrelationshipwithclients.ClientswhousedtogetservicesarethereforeconfidentinqualityandrepeatedlyusetheCompany’sservices.ThisiscoupledwiththeCompany’sfocusonclientswithhighgrowthpotential,budgetandPRplanthatneedtodomarketingsuccessivelythroughouttheyear,asaresulttheCompanygainstrustfromclientscontinuously.3.Recommendationfromoldclients
Withover30yearsofexperiencesandprovisionofserviceswhichhavebeenaccepted well by clients both in quality and creative aspects plus innovative presentationconceptbutharmonizedwithclients’events.ThisiswhymanyclientsareconfidentinthequalityofworkoftheCompanyandoftenrecommendotherclientstousetheCompany’sservices.
B. The competition situation in event management service1. Competitive situation and strategy in event management serviceThecompetitivesituationineventmanagementserviceishigherandhighereverydayduetothefactthattheorganizingofmarketingactivitiesiswidelyacceptedasarealaccesstoconsumerswhogetdirectexperiences.Thismakesmarketingactivitiespopularamongmostcompaniesbothforspecificgroupandpublicinordertogetmoremarketingoutcome.
Theenteringintoeventmanagementservicebusinessisnotverydifficultasthecapitalinvestmentisnotveryhighandpersonnelrequiredisnotalot.Nowadays,businessoperationcompaniesthatprovideeventmanagementservicecanbeclassifiedinto2bigcategorieswhichare:thecompaniesthatoperateeventmanagementserviceastheirmainbusiness,consideredasthetradecompetitorsoftheCompany,andcompanies that produceTV and entertainmentprograms relying on their strongpointsinhavinggoodreputationandmediainhandtoconnecttoeventmanagementbusinessandbidforworktocompetewithdirectoperators,includesadvertisingand
PRagencies.Someagencieshaveinternalunitsthatfunctionaseventmanagementserviceprovidersfortheirownclientswhichareconsideredasindirectcompetitors.However,withthegrowthandpopularityofeventmanagementmarket,theseindirectcompetitorspaymoreattention toeventmanagementbusiness. Inparticular, the advertisingagenciesthatturntocompeteineventmanagementmarketbyestablishingcompaniesorunitsforeventmanagementfortheirclientsseriously.Nevertheless,eventmanagement requires experiences, high operational expertise and a greatnumberofworkingteamsthatmakeitnecessarytousetheservicesfromcompanieswithdirectexpertise.
NowinThailand,therearealotofoperatorsconductingeventmanagementbusinessbutonly5-6operatorsarebigcompanies including theCompany.TheCompanyoperatessystematically,hasstability,canprovidequalityservicesandistrustedbyclients,catchesmanytargetgroupsbothingovernmentalandprivatesectors.Eachbusinesshasdifferentskillandconnection.IfusingtotalsalesvolumeasacriteriontodifferentiatebusinesssizeoftheCompanywhencomparingwithcompetitorsofdirecteventmanagementservice,itisconsideredthattheCompany’sbusinessscaleisbig.
Whetheranyeventmanagementcompanygetsajobfromaclientornotdependingonreadinessandcompany’sstabilitythatcansupporttheevent.Moreover,thecrucial point istheabilitytoproducequalitywork.Thefactorsconducivetoqualityworkarepersonnelparticularlycreativeandproduction teamswithcreativity,expertise and experiences, ready supporting team, ability of eachproducer to allocate allcompositionstoproduceworkasrequiredbyclientswithinthesettimeandbudgetincludingstrictmanagement.
2. Competitive potentiality of the companyFortheCompanythathasoperatedeventmanagementbusinessforalongperiodof time,over30years,hasproducedqualityeventsemphasizingonpresentationof innovativeactivitiesstressingoncreativityandqualitycontroloneveryservice procedure.AllthesemaketheperformancesoftheCompanywellacceptedasquality eventsbyclientsfrombothgovernmentalandprivatesectorscontinually.Thus,plentyofclientsusetheCompany’sservicescontinuallywhichmaketheCompanyearnunceasinglyrevenueandgrowevenintimeofeconomiccrisis.WhentheGDPrategrewlow,theexpenditureonpromotionalmarketingandPRactivitieswasminus.Inordertomaintainthestatusastheleadingcompanyinthebusinessandincreasepotentialities in growth andcompetitiveness, theCompanypositioned itself as aproviderofturnkeyeventmanagementservicescoveringallkindsofshoweventsbyemphasizingonqualityasthekeyprinciple.Now,theCompanyisacceptedwellbybothCompany’sownclientsandcompetitorsasleadingcompanyineachcategoryofeventmanagementscurrentlyoperatedbytheCompany.
32 33Annual Report 2018 CMO Public Company Limited
Show
Summary customer’s satisfaction and purpose
Design theme of event
Control operation and PR
Management Procedure Route
Prepare mockup & Present the proposal
Manage and organize an event
Got requirements from customer
(3) Provision of products and services
Theprocedureinprovidingeventmanagementservicescanbedividedasfollows: 1. Theprocedureonprovidingeventmanagementservicesbeginswhenbeing
contactedbyclientswhoaretheownersofproductsandservices.TheclientswillinformtheCompanythepurposeoforganizingtheevents:ifitispromotionalmarketingactivities,seminarsforsalesrepresentativeseitherfortheirproductsortheirservicesorthepromotionofvariousaspectsoftheirimages.TheCompanywillsendworkingteamtogetclients’needsandobjectivesoftheeventsincludingbudgetfortheeventorganizationaccordingtothetime,dateandvenueofappointmentmadebyclients.
2. AfterthattheCompanywillmakeananalysisforcompleteunderstandingof theclients’needsandobjectivesof theevents.Then,ameetingofworkingteamsconsistingofstrategicplanning,creativeandproduction,isheldtobrainstormandsetformat,guidelineandhowtopresenttheproposalincludingtheinitialcostestimate.Theworkatthisstageistoensurethattheconceptandformatofeventsrecorrectaccordingtotheneedsofclientsandwithinthefinanciallimitassetbyclients.
3. Preparation for readiness toorganizeeventsequipmentandmedia forpresentation,productioncontrolandPRoftheevents.
3.1 Readinesspreparationforequipmentandmediaforpresentation:ProductionTeamwilltakeactioninpreparingequipmentrequiredsuchascommunicationtoolsusedamongworkingteams,electric,light,colorandsoundsystems,specialeffects,presentationmedia,costumesforactors/actressesandmasteroftheceremonyincludingstagepropsthataresuitableforconceptsandformatsoftheevents.
3.2 Production control and PR event: at this stage, theCompany proceedswithproductionaswellascheckingandcontrolqualityoftheeventsatallstagesofproductioninordertoensurethattheworkproducedhavequalityandisinaccordancewiththeclients’ objectives. During the production period, the Company will coordinatewiththecompaniesthatareownersoftheeventsandconcernedagenciestomakePRoftheeventtobeknownbytargetgroups.
3.3 Designing ofmanagement and control of events: designing of management and control of events including the selection andtrainingofstaff foreventorganization.The recruitment,selectionandtrainingarejointlyconductedbytheCompanyandclientsforsupporting staff such as receptionists,waiters/waitresses, ticket inspectorsincludingmasteroftheceremonyandactors/actresses. The preparation andmanagement of event venues starts fromrequestingofapprovalfromconcernedagenciesforauthorizationaswell as knowing the limitationsof the site. Theplacement ofequipment,toolsatproperspotsforapplication,makingattractivestage andbackdropdecoration, and allocating adequate spacefor attendants including space for traffic thatprovide access for attendants fromonespot to theothersconvenientlyandquicklyincludingsecuritymeasuressimultaneously.
3.4 Proceedwitheventorganizationaccordingtothesettime,dateandvenue.
34 35Annual Report 2018 CMO Public Company Limited
Singha Music presents Imagine Dragons Evolve World Tour in BangkokLEDsystembyPM Center
Katy Perry Witness The Tour 2018 BangkokLEDsystembyPM Center photobyBEC-Tero
Volleyball Women’s Nations League 2018LED,LightingandAudiosystembyPM Center
2.2.2 Event equipment rentalsService (PM Center)
(1) Products and services
EventequipmentrentalserviceisoperatedunderPMCenterCo.,Ltd(AbbreviationasPM).Thecompany’sserviceservesbothorganizerandagencythatmanageaneventorperformance.
PMisanall-in-oneservicesupplythusPMservesthemarketbyprovidingequipmentrentalservicealongwith installationandtechnicianservice,aswellasproductionconsultingservice.
Currently,PM’sserviceiscategorizedbysystemin4categoriesasfollowing; - ImageorvisualsystemisinclusiveofLEDscreen,LCD&DLPprojector,
projection screen,plasmadisplayandXenonslideprojector;with thisvariousequipmentourservicemayserveinmanytypeofeventfromstillimagedisplay,motionpicturedisplayto3Dmappingonabuilding.
- Lightingsystemisinclusiveofconventionlighting,outdoorlighting,concertlightingandexhibitionlighting.
- Audiosystemcanservemeeting,conference,productlaunchingeventaswellaslightandsoundshow.
- Special effect includes the following equipment; lasermachine,waterscreen,variouskindandshapeof fountain,confetti,paperblowerandflameprojector.Apartfromthespecialeffectequipment,PMalsoincludesrooftopandtrusssystemintothiscategory.
(2) Marketing and competition situation A. Business strategyBusinessstrategyintermofsellingprice,PMconsidersbaseonactualcostoflabor,logisticplusmarketpriceoftheequipment.However,thesellingpriceofwaterscreenandfountainareconsideringbaseonrequirement,techniqueaswellasactualcost.
B. The competition situation in event equipment rental serviceInthisrecentyears,therearenewlyopensmall-mediumequipmentsupplycompanyinthemarket;however,PMstillkeepitsstrengthinthecompetitivemarketbybeinganall-in-oneservicecompanywhileothercompaniesarestillfocusservicingonlyonecategoryorsystemwhichcausePMisrelativelycompetitiveinmedium-highmarket.
Inordertokeepthemarketshare,PMbelieveoneofthemainkeypointiskeepingtheproductupdateandreadyforthemarket’strend.Sincethetechnologyoflightandsoundequipmentkeepsdeveloping,PMalsoprioritizestogettingnewproductsaswellastrainingourtechnicianswhichisourstrengthinthisbusiness. � Clientsandtargetgroups - EventOrganizer - Governmentandprivateorganizationwhoorganizetheirownevent
(3) Provision of products and services
a) Equipment:Purchasingnewproductisbasedonpastrecordoffrequencyofsellingplusrentalrecordaswellastrendinthemarket.Inordertokeeptheproduct’squality,thereisaprofessionalteaminspectingfactoryandcheckingqualityoftheproductasperstandardpolicy.
b) Personnel:RecruitingandtrainingstaffisanotherimportantwaytokeepPM’sserviceonstandardinlongterm.
(4) Corporate social responsibility Apartfromrecognizingthesignificantofkeepingproductupdateandin-trend,PMalsotakesresponsibilitytothesocietyandnaturebyincludingtheconditionofenvironmentalfriendly’sproductandenergysavingproductinthestandardpolicy.
Singha Music presents Imagine Dragons Evolve World Tour in BangkokLEDsystembyPM Center
36 37Annual Report 2018 CMO Public Company Limited
60th Anniversary IsuzuInteractiveWallby The Eyes
50th Anniversary of DOW Thailand GroupMappingbyThe Eyes
2.2.3 Multimedia Presentation Service (The Eyes Co., Ltd.)
(1) Products and services
TheEyesCompanyLimited(TheEyes)runsaone-stopserviceofvideopresentation,multimediaandinteractivemediaproductionrangingfromthefirststepofcreativedesignanddevelopment,filmorsoftwareproductiontothedeliverystepincludingsoftwareinstallationatanyevents.Ourwide-rangeofmultimediaareusedformanypurposes; video to be a corporate profile,multimedia and interactivemedia for marketingevents,conference,exhibitions,andevenmuseums.
Our 3 Core Services are: - Multimedia:apresentationmadebymulti-mediaincludingvideo,images,
graphic,light&soundtomakeclient’sproductsorservicesmoreattractive.Theseareusuallyusedformarketingevents,conferences,exhibitionsandmuseums.Ourmultimediaincludesmulti-screenandpanoramavideo,3Dmappingprojection,hologramtechnic,magicdisplayand3Dvideo.
- VideoPresentation:Weprovideaone-stopserviceofvideoproductionfromcreative&scriptdevelopment,shootingproduction,computergraphicdevelopment,soundrecordingandmixingandvideoediting.Ourtypesofvideoproductionrangesfromcorporatevideo,promotionalvideo,productinformationvideo,TVC,shortfilmtodocumentary.
- InteractiveMedia : This kindofmedia is used to coloring the events, exhibitionsormuseumstodrawclientsorparticipants’attractionsastheycan interact with the media to get into the details or information of the productsandservicesbyamoreentertainingway.Ourinteractivemediaincludesphotobooth, interactive shadow,Kinect interactiveprogram, multi-touch table, reactable, transparent display and augmented reality.Ourservicerangesfromsoftwarecreativedesign,graphicdesignanddevelopmentandsoftwareprogrammingthatcanbeadjustabletoclients’preferences.
(2) Marketing and competitiveness
A. Marketing policy � Pricing policyTheeyesuseastandardpricesettingpolicytobecompetitivebymarkingupmarginfromtheservicescost. � Clientsandtargetgroups 1.1 Eventorganizersandadvertisingagencies 1.2 Governmentsectorsandprivateorganizations
B. The competition situation in multimedia presentation service TheEyes’strengthisthatweareoneofafewone-stopservicemultimediaproductionhousesinthemultimediapresentationmarketandwealsohaveprofessionalteamworktocreateahigh-standardmultimediatechnicwithreasonableprice.
To continue being a leader in themarket, The Eyes gives precedence to staff development.Wesendourstafftoseveralbeneficialtrainingcoursessothattheycangetup-to-datewiththefastforwardtrendingoftechnology.
MarketingPolicy:Westillfocusongreatserviceandprofessionalworkstocontinuebeingaleaderinthemarket.Besides,wewillnotstopresearchinganddevelopingnewproductstoserveclients’needs.Onlinemarketingisourmainchanneltopublishourworksandcommunicatewithourclients.
(3) Provision of products and services a) Equipmentformultimediaproduction:TheEyesprovidestoolsandequipment
forproducingmultimediasuchassoftwareprogramsforcomputergraphicdevelopment,videocameraandothertoolsforvideoproduction.
b) Personnal:TheEyessetsspecifictrainingcoursetostafftobeproficientinusingsoftwareprograms,cameraequipment,etc.theyuseformultimediaproduction.
(4) Corporate social responsibility 1. GreenOfficeBuilding:TheEyeshasconcernaboutreducinguseofenergy
tohelptheenvironment.Ournewofficebuildingisdesignedtohaveaglasswalltohelplowerlightinguseindaytime.Thesensorlightsareusedonthecorridors.Andwealsohaveapolicytoturnofftheelectricitywhennotusingit.
2. Recyclepolicy:Reducetheuseofnewpaper,reusepaper,andreduceprintingpaperandusemoreofonlinedocument.
38 39Annual Report 2018 CMO Public Company Limited
2.2.4 Utilities services provider (Exposition Technology)
(1) Products and services
Utility service is provided under the operation of Exposition Technology Co.,Ltd. (orExpoTech)which isasubsidiarythat theCompany isashareholderholding40%ofthepaidregisteredcapital.ExpoTechisaproviderofutilityservicesystemssuchaselectricalconnectingsystem,waterpipingsystem,airductsystemandsignalwiringsystemthatareessentialtoeventorganizing.Furthermore,ExpoTechistheofficialoperatorofutilityservicefortheChallengerHallofMuangThongThani.
(2) Marketing and Competition Situation
A. Marketing policy � Policy and pricingThepricingpolicyonutilityserviceofExpoTech isstandardizedandcompetitivewithcompetitors in themarket. It isset fromcostsofeachservicecategoryplusappropriateprofitorreturn. � Clients and target groups - Both governmental andprivate agencies that require public relations
activitiesfortheiragenciesandorganizetheireventsattheChallengerHallofMungThongThani.
- EventOrganizerswhodo not have their own internal units or skillful subsidiariesinutilitysystem.
B. The competition situation in Utilities services providerConsideringutilityserviceprovidersforeventsofsalespromotionorvariouseventsinThailand,itisfoundthatthereareplentyoperators.However,mostoperatorsareskillfulonlyat1or2systems.ThereareonlyafewoperatorsincludingExpoTechwhoarecapableofprovidingcompleteutilityservice.Inparticular,ExpoTechisasoleofficialoperatorforeventorganizersattheChallengerHallofMuangThongThai.ThisgiveExpotechadvantageindealingwithotherclientsandcreatingperceptionofprofessionalservicestoclients.
(3) Provision of products and services
a) EquipmentTheCompanyhasapolicyonprovisionofqualityproductsmatchingtherequirementsofclientswithTISIStandardtobuildreliabilityoftheCompanyforclientswhousetheservice.Allofthematerialsusedarepurchaseddirectlyfrommanufacturersordomesticsalesagentsorfromagentswhoimportedfromabroad.AnotherpolicyoftheCompanyisusingenvironmental-concernedproducts,andreducingtheuseofenergybyenergysavinglightbulbs.
b) PersonnelBythenatureofthebusiness,personnelisthecrucialfactorinbusinessoperation.Inaddition,theenteringintotheASEANEconomicsCommunitymakesitnecessarytodeveloppersonneltointernationallevelbothengineeringandserviceprovidingaspectsespeciallyoncommunication skill.Languageproficiencyforcommunicationisneeded.Therefore,theCompanyhasapolicytoincreasestaffefficiencybytrainingforbetterskillandexpertiseonbothengineeringandlanguage.
(4) Corporate social responsibility
Nowadays,ExpositionTechnologyCo.,Ltd.deemstheimportanceofreducingimpactonenvironment,asaresultLEDbulbsareusedinstead.LEDbulbsreleasealmostnoneofheat so they reduce theenergyutilityof theHall forair-conditioning.Airconditionersworklesssotheuseofenergyissavedindirectly.FluorescencetubeshaveimpactonenvironmentasthetubescontainMercuryvaporwhileLEDbulbsdonotorhaveverylittleimpactandlongerlifespanof50,000–100,000hoursandconsumeonly0.5–1wattofelectricity.
40 41Annual Report 2018 CMO Public Company Limited
2.2.5 Services on Tourist Attractions
(1) Products and services
CMOShowCorp.wasoriginatedfromthestrengthsynergyofthetwogiganticleadingcompaniesinentertainmentsolutionofThailandthatareCMOPublicCompanyLimited andShowDCCorp.WhileCMOPublicCompanyLimited is thebiggest leading companyinASENineventcreation,multi-mediaartandcompletesystemoflight,colorandsound,ShowDCCorp. is theoperatorofShowDCTouristDestinationCenter.ThisCenteristhenewlandmarkinthecenterofBangkok,locatedontheareaof150,000sq.monChaturathitRoad,Rama9,theheartofBangkok’snewbusinessarea.ItisthefirstandbiggestshowspaceofthiskindinThailandforcreatingthemagnificentshowunderthename“HimmapanAvatar”.
“HimmapanAvatar”istheshowintheformofspectacularwalk-throughexperienceofthemostcompleteintegratedmagnificentperformanceinASEAN.Theshowwillbereadytocreatethethrillingphenomenonwithin2016.Combiningthepowerofcreativitywithperformingartandultimatemulti-mediatechnologies,theshowwillbringaboutnewdimensionsofnewexperiences inviewing for theaudienceandtouristsfromaroundtheworld.Thus,willeventuallyhelppushforwardthetourismandeconomyofThailand.
(2) Marketing and competition situation
A. Marketing policy � Policy and PricingThepricingpolicyofCMOShowCorporation Limited is competitivepricing. The admissionfeeto“HimmapanAvatar”willbeappropriateandcompetitivewithaswellasequivalenttocompetitorsofthesamebusinesscategory.Then,reasonableprofitandreturnwillbeadded. � Clients and Target Groups
2.1 TheChinesetouristswhovisitThailandeithercomingwithgrouptoursandontheirownorFIT(ForeignIndividualTourism)
2.2 ThaisandtouristsfromotherAsiancountries
B. The competitive situation in service on tourist attractionsWhenconsideringtheoperatorsofshowsortouristattractionbusinessinThailand,itisfoundthattherearealotofcurrentoperators.However,mostoperatorshavelocationsasstand-alonetype(thespaceisforonlythatsingleshow)orinthetourist townsintheprovinces.While,HimmapanAvatarcontainsoutstandingfeatureswhicharethelocationandthelandmark.TheshowspaceislocatedintheShowDCMegaComplexwhichisthenewshoppingandcompleteentertainmentlandmarkfortouristsonChaturathitroad,Rama9,thecenterofnewbusinessareaofBangkok.Ittakesonly30-minutetravelfromSuvarnabhumiandDonmuangAirports.Moreover,itiseasilyaccessiblebymultipleroadsandrailtransportsystems,closetoanAirportRailLinkstationandconnectedtovariousexpressways.
Onthepotentialside,ShowDCisthebiggestspacetoaccommodatetouristsandthefocalpointoffullrangeofgoodsandservices.Inaddition,asShowDCisthefirstretailerinThailandwhodesignsallfacilitiestoaccommodateagreatnumberofforeigntouristswhichwillbebeneficialtoHimmapanAvatar.HimmapanAvatarwillbecomeanotherdestinationforbothThaiandforeigntouristswhowishtoexperiencetheutmostfromtravellingThailand.HimmapanAvatar,thespectacularwalk-throughexperiencewillbethemostprominentnewshowofThailandandASEANthatwillreinforceandstrengthenfurthertheimageofThailandasthecenterofcultureandentertainmentofASEAN.
MarketingPolicy:CMOShowCorp. holds to the principle in creating excellent experiencetoaudience.Byapplyingmodernlight,colorandsoundtechnologiesinthepresentation,HimmapanAvatarwillbesuperbandequivalenttothepopularshowsabroadandcorrespondedtotheneedofThaiandforeigntourists.TheyneedthrillingviewingexperiencesandtheblendinginoftheThailegendandbelieftotheshow.
Moreover,CMOShowCorp.hasplaced theemphasisonpublic relationson theperformanceofthecompanyandtheshowofHimmapanAvatar.HimmapnAvatarisregardedastheshowwhichisthedestinationfortouristsworldwide.ItisamustfortouristswhovisitThailandtocometoviewtheshow.Thepublicrelationsismadeviavariousmediaeitheronline,on-airoron-groundconsecutivelyinordertoreachtargetgroupsfastandtobewiderknowntocorporateclients.
(3) Provision of products or services
a) Equipmentusedforproductionofpresentationmedia:CMOShowCorp.hasthepolicytoprovidetoolsandequipmentaswellastechniquesandmethodstoproduceperformingmediathatmakeHimmapanAvatarShowattractive.Withdifferentformatandquality,theshowwillbeextravagantcombiningperforming art and the utmost comprehensivemulti-mediatechnologiesinASEAN.
b) Personnelandstaffareoneoftheimportantcomponentsincreatingtheshow:HimmapanAvatar,CMOShowCorp.hasthepoliciestotrainpersonnel, toselectperformerswhoareskillful,talentedandexpert inperformingandtouseequipmentincludingvarioustoolstomakeHimmapanAvatarShow,theshowofworldstandard.
42 43Annual Report 2018 CMO Public Company Limited
Qurator 2nd Anniversary byMomentum S
2.2.6 Private Life Style Event Service
(1) Products and services
MomentumSprovidescomprehensivepremiumservicesforcreatingprivatelifestyle event.We are the leading experience communicator creatorwithworld’s class craftsmanship; to be customer’s trusted solution under the concept of “infinite creativity,”Wecreateperfectcombinationoffashionandentertainmentbydesigningmodishideasofeventdecorationandsurprisesmoment.Ourprofessionistounifystylish,creativity,uniquenessandfashionintoone.
(2) Marketing and competition situation
Nowadays,eventorganizerinThaimarkethavebothcorporateandfreelancesector.Wehavenodirectcompetitor inthemarketduetothefactthatweareapioneerofonestopserviceprivate lifestyleeventorganizer inThailand.Moreover,wedospecializeonprivateeventbutwealsocandocorporateeventexcellently.Thereforeontheotherhand,consideringcompetitionin“eventorganizer”notemphasizingonprivateeventonly,wehaveindirectcompetitorforexampleweddingplannerswhichareWeddingisme,Rainforest,Kaidang,Phka,BoxweddingandTue.Asaresult,eventorganizingcompetitionishigh.ItsomehowindirectlyaffectsMomentumSonnumbersofcustomer.
A. Marketing policyIn2017,MomentumSwillfocusmoreonprivateeventespeciallyweddingmarket.From the record,more than300,000personsorganizewedding receptionwhichcostmorethan30,000millionBahtinayear.Comparingwithothereventssuchasbirthdayparty,anniversaryandhennight,wethinkweddingmarketisworthtoinvest.
B. The competition situation in private life style event serviceMomentumSrentalspricerangecomparingtoothereventorganizerismoreexpensiveduetothefactthatalltheelementsandrentalsthatweuseineventsarealltailormade.Normally,othercompaniesreuseandrecyclerentalsandthecostisreduced.Thus,MomentumSwillreuse,adaptandrepairusedrentalsinordertosavethecostfortheupcomingeventorganizing.
(3) Provision of products or services
Thecompanyhasprovidednewsuppliermatchwithcustomerneedandlowcostbutalsomeetthestandardsuchasstructure,decoration,cateringandprinting.Inaddition,toprovidedspecialtiesformoreefficiencyresult.
(4) Corporate social responsibility
MomentumSCo.,Ltd.isaneventcompanywhichfocusesoncreativityandelectroniccommunication.ThecompanybringsE-Cardforpresenttocustomer,usingE-mailforsendinformation.Thereareaddedvaluableandminimizewastecostinsteadofusingpaper,CDandmessengerexpenses.
44 45Annual Report 2018 CMO Public Company Limited
Boll & Rava Grand Opening byMUSE Corporation
2.2.7 Event and Concert Organizing Service
MuseCorporationisthephenomenalproducerthatdeterminestoinvententertainmenteventswithfun,styleandcreativeforce:“PlayingwithPhenomena”.Museprovidesturnkeyeventmanagementservices foreventsandconcertshows.Thescopeofservicesisasfollows: - Creativedesigning - Planningmarketingcommunicationinaccordancetothemarketingplans
of clients - PlanningPRtosupporttheprojects - Designing workpiece - Givingadviceoneventmanagementandpreparingforappropriatevenues
fordifferentcategoriesofevents - Givingprimaryadviceonequipmentandmediafororganizingshows - Providingdesigningandproductionservicesrespondingtoclients’ideas - Productioncontrol - Providingassembling,installingandinteriordecoratingservicesforclients - Show management - Identifyingsponsors
(1) Products and services
ThreemainfeaturesofservicesoftheCompanyare: - Creative&EntertainmentProductionAgency:theCompanyinitiatesnew
projectsas“Promoter”andthenidentifiessponsors - Tailor-madeCorporateEntertainment:employedasphenomenalcreative - NewExperienceforBranding:buildingonbrandstrengtheningandmaking
thedifference
(2) Market and Competitive Situation
1. Emphasizeondifferentcreativeconceptsviacreatingtailor-madeeventswithidentityforeachclient.Duetothecurrentfiercecompetitionandrapidchangesinmarketingcommunication,theCompanyfocusesoncreatingeventswithidentitythataresolutionsforclients’problemsandthesetgoalsbypresentingneweventformatsandnewtechniques.
2. Provide integratedmarketing communication that serves clients as one-stop-service.Whethertheyareadvertisingandpublicrelations,oradvertisingandpublicrelationsmediaplanning,andonlinecommunication,etc.tocreatecontinuedcommunicationwithtargetgroupsmoreefficiently,theCompanycanprovideconsultationfromtheverybeginningprocedureasConceptExploration,StrategicPlanning,Production,andOperation&ManagementtoMonitoring&Evaluationforclients.
3. AdministerClientRelationshipManagementandemphasizeontakingcareofclientsinlong-term.ThisstrategybuildsreliabilityoftheCompanyintheclients’perceptionandresultsinlong-termcontracts.Theclientsarewelltakencareofbyteamsofexpertswhoarereadytoprovideservicesproperlyandfastincludingbeingcapableofgivingadviceandbeinggoodconsultantforclients.
(3) Provision of products and services
Theprocedureinprovidingservicesforclientofeachprojectisasfollows: - Takingbriefofproblemsandneedsofclients - Brainstormingforguidelineofpresentation - Proposal presentation in details - Productionwillbepreparedindetailsaftertheproposalisapprovedby
clients - Set upat actual event venues alongwith rehearsal aspreparation for
overallreadiness - ShowDay - Evaluation:After theevent, therewillbeanevaluation toappraise the
performancewhetheritachievesthesettarget,includingsuggestionandimprovementguidelineforbenefitoffutureevents.
- ClientRelationshipManagement: takingcareofandcontactingclientscontinuouslyandpresentsnewideasandtechniqueswhicharedeemedbeneficialtoclients
TheCompanyplaceshighpriorityonpersonnelwhoarethemostimportantassetoftheCompanythatmobilizetheCompanytoachievementandproducequalityworkforclients.TheCompanyhasthepolicytorecruitpersonnelwhohaveattitudeandqualificationthatmatchorganizationalvision.Moreover,therearetrainingsessionstoequipstaffwithknowledgeandunderstandinginthenatureandworksystemoftheCompanyincludingstudyvisitsoutsidetogainnewexperiences.
(4) Corporate social responsibility
1. Energysavingpolicy:Musehasapolicyforallstafftosharethesameeffortinsavingelectricityandwater.
2. Recyclingconsumable supplypolicy:To reduce theuseofpaperandhardcopydocumentintheCompany.Toemphasizeonre-useofpaper.Toreduceunnecessaryprintingbutdeliverdocumentsviaemailorotheronlinechannels.
46 47Annual Report 2018 CMO Public Company Limited
Imaginia PlaylandDJCanopyzone
2.2.8 Kids Theme park Service (IMAGINIA Playland)
(1) Products and Services
MAGINIAplaylandprovideserviceasindoorplaygroundtopromoteimaginationandcreativitywhichenhancechild’sphysical,mental,andemotionalwell-being.1400sq.m.IMAGINIAhasbeendividedinto21zoneswhichbranchesoutontocreative- enhancezonesfromart,music,literature,andstrategicplay.Thevenuealsoprovideall-encompassingfacilitiessuchasBakerycafe,Wi-fi,Restroom,Nappychangingcorner,andfirstaidroom. Atthepresent,IMAGINIAprovideservicesandspecialactivitiesasfollows: 1) Themedevent:IMAGINIAeventisdefinedthatpart-gamepart-exhibition
experiencewhichwilllastapproximately2monthsperevent. 2) SpecialWorkshop:Workshopthatcorrespondtoseasonalholiday,varies
fromcraftworkshoptoDIYcookingworkshop. 3) SchoolFieldtrip:Venuethatcombinesdevelopmentandfuninone:for
Kindergartentoprimaryschool(untilgrade6). 4) PartyService:Exclusiveactivitieswithcateringforspecialoccasionsuch
as:Birthday,Graduationparty,Seasonalparty(Easter,Christmas,Thanks-giving).
5) Corporate:PlayeventinaformofthankyoupartyorCRMeventforcor-porateclient.
(2) Marketing and Competition Situation
A. Marketing policy � Market strategyIMAGINIA’scoreobjectiveistocreatecreativeplayspaceforchildfrom1-12yearsold. The playland focuses on developing child’s creativitywhich enhance child developmentin4areas:Physical,Emotional,Mental,andCreativedevelopment.ThesecoredevelopmentistranslatedintoplayzonesinArt,Music,Literature,Nature,andStrategicplayindigitalinteractiveapproach. � Clients and target groups a) THAI: increase thai customer by increasing promotional sales and
campaigns. b) EXPATRIATE:Createmarketingtoolsthatencouragerepeat-of-use. c) TOURIST:Expandon regional-specific advertising that correspond to
eachcountries’holidayseason(includingoff-schoolperiods).
B. The competition situation in kid theme park servicesTheentirekid-relatedindustry,especiallyintheservice-basedsectoritself,expandexponentiallymorethan10individualsforthepast2yearssinceourbusinessstarted.IMAGINIAuniquenessinprovidingfreshandvarietyofcontentallowIMAGINIAtosetapartfrommajorityofplayersthatmainlyprovideserviceforphysical-playexperience.Nevertheless,with thecurrent trendofpromotingoveralldevelopment (especiallyonnon-academicside),severalplayersstartingtoincludecreativityactivitiesontotheirservice.ToensuretheuniquequalityofIMAGINIA,westrategizeinmaintaining cleanliness, friendly environment and service and take importance in improvingplayequipmentthathasthebalanceelementoffunandeducational,amixturethat becomesthemajordemandforalltypesofourtargetcustomer.
(3) Provision of products and services
a) Products:IMAGINIAtakecommentsandconductseveralformsofprivateandpublicsurvey togather facts inorder to improveourproductandserviceaccordingly.
b) Personnel:IMAGINIAconductseriesofskillandservicetrainingasfollows: - Service : Information-testforalloperationstaffstoensurecustomer’s
smoothplayexperience - Safety First Aid: All staffs hasbeenonbasic first aid trainingwhile all
supervisorlevelareinquiredtopassintensivefirstaidtraining. ChildPsychology:Basic training in child psychology for proper
handlingofchildren(includingspecialneedschildren). - Technology : All staffs receive training knowledge in basic play
equipmentmaintenanceandcommonerrorsfix.
(4) Corporate social responsibility
IMAGINIA issue earth-friendly policies for both internal usage and campaign forcustomerasfollows: Internal policy : - Consistentially checking and controlmaterials forworkshops to be
sufficientforcustomerwhileavoidingmaterialwastee.g.foodingredientusagemanagement.
- Recyclepolicy:use2sidesofpaperandconvertusedpaperintoartandcraftmaterialandon-sitedecoration.
- Energy-savingpolicy:Turnoffcomputerandairconditioningduringlunchhours.
Campaign for customer : - Recycleme!Campaign: useRecycle trashbin into the playspace to
introducerecycleconcepttochildrenandfamilies. - Adding friendly reminder to several facilities e.g. liquid soap, tap, and
tissuepapertousetheresourcesonlyneeded.
48 49Annual Report 2018 CMO Public Company Limited
03RISK FACTORS
Risk relating to the company and subsidiaries divided by 6 risks
3.1 Risk from inconsistency of the client
companies’ plans for marketing activities
Nowadays,marketingeventsisanefficiencytoolofmarketing to penetrate into targeting customer of each products or service.Theseactivitiesare,therefore,supplementaryactivitiesfortheclients’business.Consequently,theCompany’seventmanagementcaneasilybeaffectedbythechangeofcustomer requirement, such as the policy change from foreign headoffice in termsof content andbudget, theproduct change,thebudgetchange,thepostponementofeventschedule,etc.SuchchangesmayaffecttherevenueandperformanceoftheCompanyanditsaffiliations.
Halloween No Escape partybyMUSE Corporationphoto by Escape Bangkok
However, since the Company has been in the business continuously for over 3 decade, it has customer base comprising both government and private sectors conductingvarioustypesofbusinessandhasstrongpolicytoacquirenewcustomers. These clients havemore tendency to organize events for theirmarketing, public relationsandsalespromotionpurposes inorder to communicatedirectly to theirtargetconsumers.
Actually,theCompanyhastriedtomaintainthecustomerbaseinattempttoexpand the revenue fromeachof theclients.This is indicated fromthe fact that thestaffhasput theirbestefforts in thework,and tried toexpand theclients’successfulperformance in order to maintain continuous flow of work. A specific businessunit isestablishedto takecareandprovideservicesto thecustomersclosely.All recommendationsareacceptedforimprovement.Andmostimportantly,theclients’ budget will be worth utilized in accordance with their objectives. Moreover, the efficiencyofperformancemustbemeasurableinordertoachievemaximumquality.
Over30yearsineventbusiness,companyhascustomerbothgovernmentandprivate companyinvariouskindofindustrieswhichalsohasdifferentperiodofsettingeventinayear.Thesecouldhelpcompanytominimizetherisk.Moreover,companyalsohaspolicytoreachnewclientsinallpartofindustriesforrevenuegrowthandpalliative effectwhenkeyaccountabstainanevent.
3.2 Risk from social, economic instability and the change of government policy
EventManagementbusiness isconnected toand relatedwithadvertisementandpublicrelationsbusinessthatdirectlytiesinwiththeoveralleconomicsituationofthecountry.Thepublicspendingandgeneralbusinesssurvivalareessentialfactorforproductorserviceownersinconsideringtheuseofanykindsofadvertisementorpublicrelations,whichincludeexhibitionasamarketingtoolforsalespromotion.
Whenpeopleinthecountry,rangingfrombusinesssectorsatthelevelofconsumerproductoperatorstothehighimpactlevelsuchasenergy,aresubstantiallysensitive topoliticalsituation,thebusinessoperationisthereforedirectlyaffectedbyoverall political and economic movements such as political stability, political rally, and economicpolicy.Thesefactorsaffecttheconsiderationonrolesofadvertising,public relations,andbudgetfororganizingeventactivities,nottomentionvariousprojectpoliciesthatareestablishedandsupporteddirectlyfromthegovernmentandjointlypromotedbytheprivatesector.Examplesaregiganticprojectsofeventorganizations, suchas thecountry’spublic relationprojects for tourismpurposeor internationalconference
Nevertheless, the Company has always beenwell prepared for such cases. TheCompanyattemptstoallocatethemanagementtoavoidoverlyrelianceoncertainparties,eitherfromgovernmentorprivatesector.Thecompanyrevenuecomefromdifferentcustomers,notdependingonorinfluencedbyanycustomer.Italsotriestomaintainthebalanceofincomegeneratingoperationswithmaximumprudence,apartfromestablishingthepolicytodependonitsownwork.Moreover,companyhasCLMV’spolicy,toexpandbusinesstoCLMV’scountriesandASEAN’scountriesbyusinganadvantageandstrongpointofcompany.
3.3 Risk from changing technology
Anadvantageoftoday’stechnologyisbeyondbounder.Trendorlifestyleinwestendcancrossorshareviaan internet tobepopularatanothersideofcontinentwithinovernight.Allofthesecanhappenbecauseofadvantageoftechnologyanditchangesveryfastaswell.Then,tocreatenewexperiencetoconsumeriscannotbeusetraditionalwayanymore.Companyalwayscombinestrendandtechnologyincompanyeventstodeliverclients’experience.
Moreover,companyhasset technologyanddigitaldepartment toupdate,create,developandapplyallhi-technologythingsintoeventprocess.Thesewillreinforcetrustandconfidenttocompany’sclient.
3.4 Risk from market entering of the new operators, and from the adjustment of the clients and adjustment of the advertising firms into the Event market
EventManagementmarketbecomeswell-knownandhasincreasingmarketvalue yearly, not to mention its attractive revenue. Therefore, considerable number of operators,includingthosepreviouslyrelatingtothebusiness,whichareadvertisingagencies,media, or television programs and public relation companies, begin toadjustthemandfindwaystocreatemorerevenuefromeventmanagementmarket.Theseoperatorsattempttofocusontheirexistingstrength,aswellastoincorporate the business of event management into their operation. However, despite the attempt to createmore sellingpoints to increase revenue, the expertise in eventmanagementdependsonexperienceandspecificskills.Althoughthesecompanies trytoestablishtheEventManagementdivision,oruseothermethodsofmarketing,theexpertiseofexistingpersonnel isstillnotabletorespondtotheclientneeds.Moreover, theyarenotable toorganize theeventswithequitablestandardwhencomparedto thecompanieswithdirectexperience in thisfield.Nevertheless, thegrowth trend of these companies in the event market still creates pressure and resultsinmoreaggressivecompetitionintheindustry.
52 53Annual Report 2018 CMO Public Company Limited
Additionally, the eventmarket also involves themovement of previous operators or clients who have accumulated their experience and learned about the event managementfromourCompanyorothereventmanagementcompanies.Therefore,theseoperatorsorclientsareabletoadjustthemselves,andlearntoorganizetheeventswithoutdependinguponthedirecteventmanagementcompaniesinsomecases.Therefore,theEventindustrynotonlyconfrontswithhighercompetition,butitalsoneedstoadjust itself,aswellastomaintainandimproveitsquality.Atthe same time, it is also necessary to obtain client acceptance from successful performanceandtocontinuouslydevelopitspotentialtothegreatestextent.
TheCompanyhasdevelopedandpromoted thequalityofeventmanagementbyacceptingnewtechnologythatissuitablefororganizingtheevents.Ourstaffsareassignedtotakegoodcareoftheclientsclosely,andareabletocreatehighqualityeventswithnewconceptsthatarealwaysbeneficialforthebusinessoftheCompany. ExamplesincludetheattempttofindnewjointventurestoenhancethepotentialoftheCompanyortofindnewmarketingtoolstocontinuouslyreinforcetheCompany’sbusinessunits.Moreover,thecompanytakesadvantageinthecompany’sstrengthbyexpandingbusinessintopotentialinternationalmarkettoreducetherisks.
3.5 Risk from natural disasters
Nowadays,theenvironmentandclimatearechangeanddifficulttoforecast.Naturaldisastersareoccurringmoreoftenthanthepastwhichmayaffecttothecompany’sbusiness.Theeventmighthavetopostpone,avoidingthesedisasters.
Thecompanyalwaysconcernanddomonitoringthesituationbothnaturaldisastersandothersituation,bothinsideandoutsideofthecountryclosely,especiallyinareaswherethecompanywillbeheldtofindawaytopreventanysituationthatmayoccuraswellasthesafetyofthosewhowillbeinattendance.
Thecompanyisalsoconcernaboutthesafetyofstaffsandaudiences.Therefore, the company will provide the third party insurance for audiences for whose participatedtheeventincaseofpubliceventandeventthatcompanyconsidered.
3.6 Risk from Major Shareholder
Companyhasmajor shareholderwhich heldmoreover 25%, there isKunawongGroup. Thesemight cause the voting control in shareholdermeeting. He is alsoimportantmanagementperson.Companymighthaseffect, ifhe isnotworkwithcompany.
For the voting control factor, company hasBoard of audit committee andBoardof independentcommitteewhichhaveexperienceandequitable in termofgiving unbiased advice to shareholder toward every issue. Moreover, company has managementstructureplanasanoperationworkflowineachbusinessunit.Thesemakecompanymoreefficiencyandminimizetheconcernrisk.
Nevertheless,oneofthemostimportantfactoramongeventmanagementbusinessishavingexperiencedpeople.Thus,companygivesanimportanttocompanycrewsatalllevel.Companywillgiveopportunityfortalentpersontogrowthwithorganization. Nowadays, company has many staff in management level which worked with companyforlongtime.
54 55Annual Report 2018 CMO Public Company Limited
04GENERAL INFORMATION4.1 General Information of the Company
Name : CMOPublicCompanyLimitedType of Business : Eventmanagement forpublicevents,exhibitions andentertainmentactivitiesHead Office Location : 4/18-19SoiNuanchan56, NuanchanRoad,Klongkhum, Buangkhum,Bangkok10230Registered Number : 0107546000458Registered Capital : 255,462,733BahtPaid up Capital : 255,462,733BahtType : CommonstockHomepage : http://www.cmo-group.comTel : 0-2088-3888Fax : 0-2088-3857
Redmi Note 5 Thailand Official Launch& Xiaomi Thailand Dealer ConferencebyCMO
4.2 General information of the subsidiaries
Name : PM Center Company LimitedType of Business : Rentalequipmentforimage,lighting, soundandeffectsHead Office Location : 4/22SoiNuanchan56,NuanchanRoad, Klongkhum,Buangkhum,Bangkok10230Registered Number : 0105533044751Registered Capital : 165,000,000Baht(asatFebruary8,2019)Paid up Capital : 165,000,000Baht(asatFebruary8,2019)Type : CommonstockHomepage : http://www.pmcenter.co.thTel : 0-2091-9888Fax : 0-2091-9801-2 Name : The Eyes Company Limited Type of Business : Productionofmulti-visionslide,video, multimediaandcomputergraphicsHead Office Location : 4/27SoiNuanchan56,NuanchanRoad, Klongkhum,Buangkhum,Bangkok10230Registered Number : 0105529020606Registered Capital : 15,000,000BahtPaid up Capital : 15,000,000BahtType : CommonstockHomepage : http://www.theeyes.co.thTel : 0-2944-5683Fax : 0-2944-5684
Name : Exposition Technology Company LimitedType of Business : ElectricalandlightingservicesHead Office Location : 252SoiYu-Charoen29,RatchadapisekRoad Samsennok,HuayKwang,Bangkok10320Registered Number : 0105542010406Registered Capital : 5,000,000BahtPaid up Capital : 2,000,000BahtType : CommonstockHomepage : http://www.expotech.co.thTel : 0-2691-6318-20Fax : 0-2276-3940
Name : Momentum S Company LimitedType of Business : PrivateEventServiceHead Office Location : 4/18-19SoiNuanchan56,NuanchanRoad, Klongkhum,Buangkhum,Bangkok10230Registered Number : 0105557121900Registered Capital : 2,000,000BahtPaid up Capital : 2,000,000BahtType : CommonstockHomepage : http://www.momentum-s.comTel : 0-2381-5929
Name : Muse Corporation Company LimitedType of Business : Light&SoundShowconcertHead Office Location : 4/27SoiNuanchan56,NuanchanRoad, Klongkhum,Buangkhum,Bangkok10230Registered Number : 0105558021461Registered Capital : 7,500,000BahtPaid up Capital : 7,500,000BahtType : CommonstockHomepage : http://www.musecorporation.comTel : 0-2944-5888
Celine Dion Live 2018 in BangkokLEDsystembyPM Center photoby BEC-Tero
58 59Annual Report 2018 CMO Public Company Limited
Name : Imaginia Company Limited Type of Business : Conductinganamusementbusiness for children and familiesHead Office Location : 4/18-19SoiNuanchan56,NuanchanRoad, Klongkhum,Buangkhum,Bangkok10230Registered Number : 0105560013535Registered Capital : 10,000,000BahtPaid up Capital : 10,000,000BahtType : CommonstockHomepage : http://www.imaginiaplayland.comTel : 0-2664-8338
4.3 General information of the affiliates
Name : CMO Show Crop Company Limited Type of Business : TouristAttractionsHead Office Location : 99/6-9ShowDC,RimklongbangkapiRoad, BangKapi,HuaiKhwang,Bangkok10230Registered Number : 0105558151695Registered Capital : 140,000,000BahtPaid up Capital : 140,000,000BahtType : CommonstockHomepage : http://www.himmapanavatar.comkTel : 0-2944-5683Fax : 0-2944-5684
4.4 Information of the securities registrar
Name : Thailand Securities Depository Company LimitedType of Business : ThailandSecuritiesDepositoryCompanyHead Office Location : 93TheStockExchangeofThailandBuilding, 14thFloor,RatchadapisekRoad, Dindang,Bangkok10400Homepage : http://www.tsd.comTel : 0-2009-9000Fax : 0-2009-6662
ADFEST 2018 byCMO
4.5 Information of the auditors
Name : ANS Audit Company LimitedType of Business : CertifiedPublicAuditorHead Office Location : 100/72,22ndFloor,100/2VongvanijBuildingB Rama9Road,Huaykwang,Bangkok10320Homepage : http://www.ans.comTel : 0-2645-0107-9Fax : 0-2645-0110
60 61Annual Report 2018 CMO Public Company Limited
05SHAREHOLDERS
Imaginia PlaylandShadow Forest
As of December 31, 2018, company has registered capital 255,462,733 baht, paid up capital 255,462,733.00 baht. All paid up capital is classify in to common stock 255,462,733 shares, value 1 baht per share
Shareholder Structure
The table of major shareholder as of December 28, 2018
Item Shareholder Name Number of Shares Shareholding
1 Mr.SermkhunKunawong 64,548,932 25.27%
2 Mr.UpathumNisitsukcharoen 39,670,000 15.53%
3 ThaiNVDRCo.,Ltd. 11,806,200 4.62%
4 Mr.SompolKullertprasert 8,314,502 3.26%
5 Mrs.NatthamonYongthanyaroj 7,240,000 2.83%
6 Mr.WorachaiSantimongkolvit 6,735,700 2.64%
7 Ms.PattamaKullertprasert 3,656,585 1.43%
8 Mr.VeerayuthEiymsuthiwath 2,789,900 1.09%
9 Mr.SukitThummongkol 2,102,000 0.82%
10 Mr.VirojTangsathapornpong 2,100,000 0.82%
11 Other 106,498,914 41.69%
255,462,733 100.00%
06DIVIDENDPOLICY
ICONSIAM - Grand openingbyCMO
The company’s policy is to contribute the dividend to shareholdersnotlessthan40percentofthenetprofit(afterthecompany’sincometaxhasbeenclearedandlegallyreserved).Anyhow,thiscompletelydependsoneconomicsituation,theproceedingsofthecompanyandfutureprojectsofthecompany.
OnFebruary28,2019,theBoardofDirectorshadapprovednodividendpaymentfromthefiscalyear2018-endedDecember31, 2018.Board’s resolutionwas approach for nodividend payment.duetoCMOgrouphasmanybigeventprojectsonhand whichneedworkingcapital.Thisisalsoreducefinancialcost.
DetailofDividendDistributioninthepast5years
Year Dividend Per Share
Interim Final Total
2018 - - -2017 0.08 0.10 0.18206 0.09 0.055 0.1452015 - - -2014 - - -
07
Elle Fashion Week 2018Rooftop&StadiumConstruction,Lighting&SoundSystemOperatedbyPM Center
MANAGEMENT STRUCTURE
7.1 The Board of directors and The Audit Committee/ Independent Committee
7.1.1 The Board of directors
AsofDecember31,2018,thecompanyhas6members*ofaboardaslistedbelow:1. Ms.AnusraChittmittrapap Chairman***2. Mr.SermkhunKunawong Directors**3. Mr.Anant Gatepitthaya Directors***4. Mr.NetipongWichitwechkarn Directors***5. Dr.ChalayKunawong Directors**6. Mr.UpathumNisitsukcharoen Directors*Detailofasattachment1**Directorswhohaveauthoritytosign***IndependentCommittee
AsDecember31,2018,thecompanyhasheldtheMeetingofBoardofDirectorfor4times.
Hereisthedetailofcommitteeattend.
Name Position NumberofAttend
Ms.AnusraChittmittrapap ChairmanoftheBoardofDirector 6/6
Mr.SermkhunKunawong Director 6/6
Mr.AnantGatepithaya Director 6/6
Dr.ChalayKunawong Director 3/6
Mr.NetipongWichitwechkarn Director 3/6
Mr.UpathumNisitsukcharoen Director 3/6
(1) Authority of Board of DirectorsTheBoardofDirectorshasthefollowingauthority:
1. Setmainpolicyforbusinessoperation,financialpolicy,fund-raisingpolicyandcorporateriskmangementpolicy.
2. ConsiderforapprovalofbudgetandinvestmentprojectsoftheCompanyandsupervisetheprojectimplementationasplanned,
3. SuperviseCompany’soperationtoachieveorsurpassthesettarget4. Providegeneralandfinancial reportsof theCompanyforshareholders
andstakeholdersaccuratelyandtimelyasspecifiedbylaw5. Review adequacy and suitability of internal control system and risk
managementoftheCompany.6. Considerenteringintofinancialagreement,loansandguarantees.7. Considerbudget,annualsalaryadjustment,bonuspayment,majorwelfare
formanagement,andproposemeetingallowanceandremunerationfordirectors.
7.1.2 The Audit Committee / Independent Committee
AsofDecember31,2018, thecompanyhas3members*ofAuditCommitteeaslistedbelow:1. Mr.AnantGatepitthaya ChairmanofAuditCommittee**2. Mr.NetipongWichitwechkarn AuditCommittee3. Ms.AnusraChittmittrapap AuditCommitteeMr.VuttiphanTanametanontisasecretaryoftheAuditCommittee.Note:*Detailofasattachment1**AuditCommitteewhohasexperienceinauditedfinancialstatement
(1) Qualification of Independent Directors1. Haveleadership,vision,knowledge,proficiencyandexpertiseinCompa-
ny’soperation,andbeindependenttogiveopinion,consider,concludeandmakedecisionbytakingintoconsiderationtheultimatebenefitoftheCompanyandshareholders.
2. Holdnotover1%ofthetotalvotingsharesoftheCompany,theparentcompany,subsidiaries,associatesorlegalentitiesthatmayhaveconflictsofinterest.
3. TheindependentdirectorsoftheCompanyisautonomousfrommanagement andnotbeingemployees, staff, consultantswith regular salaryor the personswhohaveauthoritytocontrolovertheCompny,theparentcompany, subsidiaries,associatesorlegalentitiesthatmayhaveconflictsofinterestfornotlessthan3years.
(2) Authority of Audit CommitteeAuditCommitteehasauthorityandresponsibilitiesasspecifiedintheregulationandcriteriaofSecuritiesandExchangeCommissionandtheStockExchangeofThailand,andreportdirectlytotheBoardofDirectors.
Audit Committee has the following main authority and responsibillity:1. ReviewfortheCompanytohaveadequateaccurateopenfinancialreports
bycoordinatingwithExternalAuditoftheCompanyandexecutiveswhoareresponsibleforpreparingfinancialreportsbothquarterlyandannually.
2. ReviewfortheCompanytohavesuitableandeffective internalcontrolandinternalaudit
3. ReviewCompany’soperationtomakeitcompliancewithlawonSecuritiesandStockExchangeofThailand,theregulationoftheStockExchangeofThailandorlawsconcerningthebusinessoftheCompany.
68 69Annual Report 2018 CMO Public Company Limited
AsofDecember31,2018,thecompanyhasheldtheMeetingofBoardofDirectorfor4times.
Hereisthedetailofcommitteeattend.
Name Position NumberofAttend
Mr.AnantGatepithaya ChairmanofAuditCommittee 4/4
Ms.AnusraChittmittrapap AuditCommittee 4/4
Mr.NetipongWichitwechkarn AuditCommittee 2/4
4. Select and propose for appointment ofCorporate Auditor including consideringtheremunerationfortheauditorbytakingintoconsiderationthereliabilityandadequacyofresourcesandthevolumeofauditingworkoftheauditfirmaswellastheexperiencesofthestaffwhoareassignedtoaudittheCompany’saccount.
5. ConsiderandrevealCompany’sinformationincaseofrelateditemsoritemsthatmayhaveconflictofinterestaccuratelyandcompletely.
6. PerformanyotherworkthatisassignedandapprovedbytheBoardofDirectorssuchasreviewoffinancialandriskmanagement,reviewwithCompany’sexecutive if theirconductsare incompliantwith businessethics,reviewjointlywithCompany’smanagementthemajorreportstobepresentedtopublicasspecfiedbylawsuchasExecutive’sReportandAnalysis.
7. Prepare report on the activities of Audit Committee, signed by the ChairpersonoftheAuditCommittee,disclosedintheCompany’sAnnualReport.
7.2 Management Team
AsofDecember31,2018,TheCompanyhas8members*oftheexecutivesaslistedbelow:1. Mr.SermkhunKunawong ChiefExecutiveOfficer2. Ms.PiyamartYongsirichaisakul ChiefFinancialOfficer3. Ms.PanitdaKlaimanee ManagingDirector4. Ms.JutipornMingkwanrungrueng ManagingDirector5. Mr.MongkolSilthumpitug ManagingDirector6. Ms.WannaIssarangkulNaAyutaya ManagingDirector7. Ms.ThanapornPhetluan ManagingDirector8. Ms.ChanasaDermsombull ManagingDirector*DetailasAttachment1
7.2.1 Authoirty of Chief Executive Officer
ChiefExecutiveOfficerhasthefollowingauthority:1. Considerandapprovetheparticipationinorganizationofexhibitionsand
seminarsofnotover150millionBahtvalue.2. Considerandapprovetheprocurementofequipment,toolsandmaterials
oranyotherassetsofnotover25millionBahtvalue.3. Considerandapproverenting,rentingout,employing,providingservices
orcontractingtoprovideservicesofnotover30millionBahtvalue.4. Considerandapprovetheemploymentofexecutivesorstaffwhoearn
salaryofnotoverBaht500,000.Except,theemploymentofexecutivesorstaffatthepostiionsofDeputyChiefExecutiveOfficeronwards,approvalisrequiredfromtheBoardofDirectors.
5. Considerandapproveany transactionofover the fore-specifiedvaluewhennecessaryurgencyoccurredandcannotbedelayedforthebenefitorbusinessoftheCompany.Inthiscase,ChiefExecutiveOfficerisallowedtomakesuchapprovalandthenshall report totheBoardofDirectorswithoutdelay.
6. FollowtheArticlesofAssociationandobjectivesoftheCompany,resolutions oftheBoardofDirectorsandthemeetingoftheshareholders,andcomplywithconcernedlawsandregulations.Then,aftertheCompanywaslistedintheStockExchngeofThailand,therulesandregulationsoftheStockExchangeofThailandincludingtherulesandregulationsconcerningtheitemsofconflictsofinterestshallbeobserved.
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7. Consider proceeding transactions or any other necessary actions or appropriate practice to operate corporate business or for corporate businessinterestorforregularcorporatebusinessoperation.
8. Makedecision regarding themajor corporate operation, setmission,objective, policy of theCompany including the supervision of overalloperation,performance,customer relationsandbe responsible for theBoardofDirectors.
9. ConsiderandapprovethetransactionthatbindstheCompanyasaborrower intheamountofnotover20millionBaht.Ifitisover20Million,itshallbeapprovedbytheBoardofDirectors.
10. HavetheauthoritytoassignotherpersonsthatdeemedappropriatebytheChiefExecutiveOfficertomanageandtakeactiononbehalfofChiefExecutiveOfficerasnecessaryandappropriateatthediscretionofChiefExecutiveOfficerunderthecriteriaoflawsandtheArticlesofAssociationoftheCompany.
However,Chief ExecutiveOfficer does not have authority to take action on thefore-mentionedmatters,iftheChiefExecutiveOfficerhasconflictsofinterestoranyinterestinsuchauthorizedmatters.
7.2.2 Scope of Authority of Executive Team
ExecutiveTeam’sdutyistogiveadvice,suggestionand/orjointlyconsidertogiveopinionfordecisionmakingofChiefExecutiveOfficeronvariousmattersregardingbusinessoperationoftheCompany.
However,theauthorityofExecutiveTeamshallconformwiththecriteriaoflawsandtheArticlesofAssociationandtheExecutiveTeamhasnorighttomaketransactionsorgivingapprovaltheitemsthattheExecutiveTeamhasinterestorconflictsofinterestinanyotherformwiththeCompanyorsubsidiaries.Insuchcase,theExecutiveTeamshallsubmittotheBoardofDirectorsforconsideration.
Company Organization Structure as of December 31, 2018
ChiefFinancialOfficerMs.Piyamart
Yongirichaisakul
ChiefExecutiveofficerMr.SermkhunKhunawong
CompanySecretary
AuditCommittee
InternalAudit
Board of Director
Finance&Account
InvestorRelation
CMJoin BusinessDevelopment
CMEX Corporate Communication
CM One InformationTechnology
CMPlay FacilityManagement
Museum HumanResources
Odyssey legal
CM Digital
72 Annual Report 2018
In2018,totalremunerationinmeetingfeeandbonuspaidtothecommitteeequaledtoBaht2.42million.
Name
Position
Meeting Allowance (Baht) Bonus Total
Director Audit committee
Ms.AnusraChittmittrapap ChairmanofBoardofDirectors 145,200.00 - 60,000.00 555,600.00
andAuditCommittee 242,000.00 48,400.00 60,000.00 -
Mr.SermkhunKunawong Director 48,400.00 - 60,000.00 350,400.00
242,000.00
Mr.AnantGatepithaya IndependentDirector 242,000.00 48,400.00 60,000.00 555,600.00
andChairmanofThe 145,200.00 60,000.00
AuditCommittee
Dr.ChalayKunawong Director 242,000.00 - 60,000.00 302,000.00
Mr.NetipongWichitwechkarn IndependentDirector 242,000.00 48,400.00 60,000.00 350,400.00
andAuditcommittee
Mr.UpathumNisitsukcharoen Director 242,000.00 - 60,000.00 302,000.00
Total 1,645,600.00 290,400.00 480,000.00 2,416,000.00
7.3 Company Secretary
7.3.1 Company Secretary Information
Name MissPiyamartYongsirichaisakulAge 40YearsDateofEffective August17,2009Education BachelorDegree:FinancialEconomics UniversityoftheThaiChamberofCommerce MasterDegree:InternationalBusinessManagement BusinessSchool,UniversityofSurrey,UnitedKingdom.RelatedTrainingCourse 2008 : ThaiCompanySecretaryClub - FundamentalPracticeforCorporateSecretary (FPCS) 2009 : ThaiInstituteofDirectors - EffectiveMinuteTaking 2009 : ThaiInstituteofDirectors - EffectiveMinuteTaking
7.3.2 Scope of Authority and Responsibilities of Company Secretary
1. UndertakingarrangementsformeetingsoftheShareholdersandsupportingdocumentwhichrelevant.Ensuringthatthemeetingconformstorelevantlawsandregulationsandminutetaking.
2. Preparing for Company Annual Report (Form 56-2) and Company InformationReport(Form56-1)
3. Undertaking arrangements formeeting of the Board, relatedBoardCommittees.Ensuringthatthemeetingisconformstorelevantlawsandregulationsanddocumentsupporting.
4. Preparingandkeeping registrationsofdirectors,annual reportsof theBank,noticescallingShareholdersandBoardofDirectorsMeetings,aswellasminutesoftheShareholdersandBoardofDirectorsMeetings;
5. Reportingfornewdirectorormanagementposition.6. ReportingtotheSecuritiesandExchangeCommission(SEC)andStock
ExchangeofThailand(SET)forrelatedruleandregulation,includingtherelevantdocumentandothersupporting.
7. ToadvisetheregulationsandrulesforBoardofdirectorsandManagementlevel.
7.4 The Remuneration for the Executives
7.4.1 The Remuneration in type of Money
(1) The remuneration for the Board of Director of the Company
(2) Remuneration of the Management Team
Thetotal remunerationpaidby theCompany to8 individualsof themanagementteamduringfiscalyear2018,includingsalaryandincentivetotalBaht29.93million.
7.4.2 Remuneration of the Management Team
- ProvidentFundCompanyhasprovidedprovidentfundforemployeewhichcompanysubsidiaryfor3%ofemployeesalary.Totalprovidentfundsubsidiarypaidbythecompanyto8individualsofthemanagementteamduringfiscalyear2018wasBaht876,909Baht.
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7.5 Employees
7.5.1 Number of Employee
AsofDecember31,2018therewereatotalnumberof600peopleemployedbythecompanydividedbypermanentcontract594peopleandtemporarycontract6peopleasindicatedbelow: • CMOPublicCompany Limited; permanent contract 209 people and
temporarycontract3people • PMCenterCompanyLimited;permanentcontract236people • TheEyesCompanyLimited;permanentcontract30peopleandtemporary
contract 1 people • ExpositionTechnologyCompanyLimited;permanentcontract66people • MomentumSCompanyLimited;permanentcontract10people • MuseCorporationCompanyLimited;permanentcontract19peopleand
temporarycontract2people • CMOShowCorpCompanyLimited;permanentcontract2people • ImaginiaCompanyLimited;permanentcontract22people
7.5.2 Staff Remuneration
ThestaffremunerationaccordingtoArticle7.5.1intheyear2018consistedofsalary,bonus,socialsecurityallowanceandcontributiontotheprovidentfund,totalingBaht286.64million.
7.5.3 Dispute
-None -
7.5.4 Policy on Human Resource Management
TheCompanyhasstaffdevelopmentpolicywhich iskeepingknowledgeableandproficientstaff toworkwith theCompany for long-termbyapplying the followingguidelines: 1. Recruitproperstaffandassignsuitablejobs. 2. Organize orientation when first join to create understanding and
familiarizationwithworkpriortoactualworking. 3. TheCompanyarrangesstudyvisitsforstaffbothin-countryandabroad
regularlyinordertopromoteunderstandingandexperiencesofstaffineventmanagementbusiness.
4. TheCompanyhas apolicyonmaking salarypayment reciprocalwithknowledgeandproficiency.Asfortheyearlysalaryincrement,itdependsontheannualperformanceoftheCompany.
7.6 The connected transactions
7.6.1 The connected items
Incase,thereareconnectedtransactionsorthetransactionsregardingtheobtaining or disposing ofCompany’s assets as prescribed by the Announcement of theStockExchangeofThailand.Thetransactionsofsuchitemsshallbetheresolutions oftheshareholders’meetingand/oranyotheractionincompliantwiththerulesandregulationaccordingtorespectiveannouncementsasstipulatedintheregulationsoftheStockExchangeofThailand.
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08
Singha Food Fest 2byMUSE Corporation
CORPORATEGOVERNANCE
TheBoardofDirectorsofCMOPublicCompanyLimited iswell aware of the importance of corporate governance and responsibilitiestothesocietyinthebeliefthatthegoodcorporate governancewillbeakeyelement inenablingitsbusinesstoachievesuccess.Itwillalsocreateconfidencethatthereisefficient managementsystemwithtransparencyandaccountabilitytoensureconfidenceofshareholders,investors,stakeholdersandallpartiesconcerned,whichwillbringaboutsustainablegrowthwithqualityandaddvaluetothebusiness.
TheBoardofDirectorsemphasizesongoodgovernanceandrealizes that the accountable and transparentmanagementwillenhancetheCompany’sprogress inbusinessoperation.Furthermore,itwillalsostrengthentheconfidenceofallrelevant parties, and bringmaximum benefits to all shareholdersand stakeholders. The result of goodcorporategovernance performingisinformedwhichconsistofthefollowing:
Section 1 – Rights of Shareholders
TheCompanyhas realized thebasic rightsofshareholderswhich include the righttobuyorsellortransfershares,therighttogainsharesintheCompany’sprofit,therighttoreceiverelevantandadequateinformationoftheCompanyintimelymanner,therighttoparticipateandvoteinshareholdermeetingstoelectorremovedirectors.TheCompanyhasalsorecognizedthegoodcorporategovernmentandtakenstepstodemonstrateitsrespectforbasicshareholders’right.It,therefore,shallnotviolateorreducetherightsofshareholders.Thiswilleventuallyresultinthebestinterestsofshareholdersandrelevantpersons.Therefore,thecompanyhassetpoliciesrelatingtotherightsofshareholdersasfollows: • Shareholdersandstakeholdershaveenjoyedequitabletreatmentsandtherights
thattheyareeligibletosuchastherighttoreceivedividendsequallyfromtheCompany,therighttofreelytradeortransfertheirownshares,therighttoattendShareholders’Meetings,therighttoproposeinadvancetheMeetingagenda,the right tonominateapersontobeadirector, the right toexpressopinions independently,andtherighttomakedecisionsonimportantaffairsoftheCompanye.g.,theelectionofdirectors,theappointmentofauditorsandfixingoftheauditfee,approvalofsignificanttransactionsinfluencingtheCompany’sdirection,aswellasamendmentofMemorandumofAssociationandArticlesofAssociationoftheCompany,etc.Eachshareholderhastherighttovoteatmeetingsaccordingtothenumberofsharesownedwherebyoneshareisentitledtoonevote,andnoparticularshareallowsprivilegeovertherightsofothershareholders.
• An agenda item regarding theBoard’s remuneration is included to inform shareholdersoftheamountandtypeofremunerationreceivedbyeachdirectorsuchasmeetingallowance,bonusetc.Thisyeartheboard’sremunerationconsistsofmeetingallowanceandbonus.
• Theboardofdirectorscarefully considersand transparently setsapolicyonremunerationoftheboarddirectors.Suchremunerationisinthesamelevelasthatofferedbyothercompaniesintheindustryandgoodenoughtoattractandkeepqualifieddirectors.
• At the electionof directors, the shareholders shall vote for each individual candidatenominatedforDirectors.
• Inthisyear2018,thecompanyhassetanexaminerforcheckingthevote.Anauditorwasaskedtobeanexaminertoassuretheresultofvote.Thiswasalsodisclosedintheannualconferencereport.
• Priortothedateofmeeting,eachagendaisclearlydesignatedinaninvitationletter,includingtheobjectiveandopinionbytheboardofdirectors.IfanelectionofDirectorsisincludedintheagenda,thecompanywillprovideclarificationsforeachdirectorincludingName,age,education,experience,meetingattendanceintheyearandappointeddate.
• Beforeeachconference,theChairmanexplainsclearlyhowballotsarecastandcounted.
• During theconference, thechairmangives theparticipants equitable rightofquestioning,expressingtheiropinions,andgivingrecommendationsconcerningthecompanyadministrationwithouttimelimitation.Furthermore,theshareholders’ opinionscanbeproposedpriortothemeetingsviathecompany’swebsite:http://www.cmo-group.com/iraswellasEmailaddress:[email protected]
• TheCompanyhasapolicytoorganizeeachmeetingatthevenuewhereiseasilyaccessiblebypublic transportationsuchasMRTorBTS.However,once themeetingisorganizedatsuburbvenue,thecompanyalsohasapolicyprovidingshuttlebuses to service the shareholders. Furthermore, abarcode scanningprocessareusedforregistrationtomakeshareholdersconvenientandtakelesstime.
• Thecompanyreveals thenameofexternalauditors,auditfirm,audit fees for selectionandappointment.Thecompanyhassetapolicytoconsider,select,andappointthecompany’sauditorwhoiswellknownandacceptedbytheSecuritiesandExchangeCommissionThailand.
• Thecompanyrevealsdividendpaymentpolicyintheannualreport.Intheagendaofdividendpaymentconsidering,theshareholderswillbeprovidedtherateofpaymentandrelatedinformation.Iftheagendaissettobeconsideredasnotpayingdividend,thereasonswillbeclearlyexplained.
• For shareholderswhodonotattend themeeting, theminuteswas recorded accuratelyandcompletelywhichincludingnameandpositionofattendeddirectors,methodofthevote,questionsandanswers,ballotsforeachagendaforsendingittoSETandtheSecuritiesandExchangeCommissionaftermeeting.Minutesofthemeetingendorsedbytheshareholdersarekeptinasafeplaceandallrelevantpersonsareeligibletochecktheminutes.
• Eachshareholders’meeting,thecompanyrevealstheresolutionandballotstoSETonedayafterthemeeting
• This year, five-sixthsofdirectors, including theCEOattended in theannual conference.
• Thecompanyhasaclearandtransparentshareholderstructure.Thereisnoastockpyramidorcross-holdingamongmajorshareholders,therebypreventinganyconflictofinterestortransferofbenefitsfromonepartytoanother.Recently,theproportionofFree-Floatstockofthecompanyis59%.
• Shareholderswhoarethecompany’sexecutiveswillnotaddanyunnecessaryandunannouncedagendas,especiallyimportantagendas,whichrequireothershareholderstotaketimetostudy.
• Thecompanyhasneverneglected treating shareholdersequitablyand fairly regardingsharerepurchaseneverobstructedshareholderstocontacteachotherandalsoneveromittedtorevealShareholdersagreementwhichmayconsiderablyaffectonthecompanyorothershareholders.
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Section 2 – Equitable Treatment of Stakeholders
TheCompanyhascompliedwiththepolicytotreatitsshareholdersequallybyplacingemphasisonequalityofbothmajorandsmallshareholders,andattachingimportancetotheirfundamentalrightsandencouragingthemtoexercisetheirrightsasgivenbylaw. Information isprovidedcompletelyandequally tomake theshareholders feel confidentinmakinginvestments,andprovidebenefitsandshareprofitsonanequalbasis.Consequently,meetingoftheshareholdersisarrangedunderthefollowingpolicies: • In voting for each agenda, each shareholder or a proxy authorizedby any
shareholdertovoteonhis/herbehalfwasentitledtovoteequaltothenumberofsharesheld,wherebyonesharewouldbeequaltoonevote.
• Recently,thereisonlyordinarysharetraded.However,ifthecompanyreleasesmorethanonetypeofstock,therightstovoteforeachtypewillbeannouncedtotheshareholders.
• Allowingeachshareholder toproposeagenda forconsiderationanddirectornomineeatashareholders’meetingaheadof theactualmeetingdateviathecompany’sEmail address: [email protected], theshareholdercandirectlyproposetheagendatothecompanysecretarydepartmentbymail.
• Thecompanyhasdevelopedthecodeofconductaswellasaninsidertradingandconfidentiallypolicyfortheexecutivepersons,andtheemployeesinwriting.Inordertobeawareofitanduseitastheguidelineforexecutionoftheirdutieshonestlyandmorallyandmustnotusetheinsiderinformationaspersonalinterest.
• Thecompanyhasdisclosedconnectedtransactionsincludingnames,relationshipoftheconnectedpersonsandalsopricingpolicybystrictlyfollowingtherules,regulations,andordersoftheStockExchangeofThailand.
• Thereisnoconflictofinteresttransactionbetweenthecompanyandaffiliatedcompanies.Justonlyordinarytransactionsareexecuted.
• Anyshareholderwho isunable toattend themeeting isentitled toappointa representative,e.g.,anindependentdirectororotherperson,toactasproxy,usinganyoneoftheproxyformsA,BandCattachedtothenoticeoftheMeeting.Forshareholders’convenience,thedocumentforusingwithproxyisanordinarysuchasidentificationcard.Furthermore,thecompanyprovidesthedutystamptobesealedontheproxyform.
• ThecompanysendseachoftheshareholdersaletteridentifyingthedateofthemeetingincludingthemeetingdocumentsbothThaiandEnglishatleast14dayspriorthemeeting.Besides,thecompanyhasapolicytoannouncebothThaiandEnglishinformationviaCMOGroup’swebsite:http://www.cmo-group.com/iratleast14daysbeforethemeeting.
• Thecompanyhasdisclosedtheinformationregardingdirectorsandexecutives’shareholdinthecompanycompliedwithregulationsofSecuritiesandExchangeCommissionandtheStockExchangeofThailand.Besides,thecompanyhasnoconnectedtransactionsinvolvedwithfinancialsupporttoacompanywhichisnotanaffiliatedcompany.
• Nothavedirectorsorboardstradingsecuritiesbyusinginternalinformationinthisyear.
• Duringyear,thecompanyconductedconnectstransactionandtradingsecuritiesregulationsbystrictlyfollowingtherules,regulations,andordersoftheStockExchangeofThailand.
Section 3 – Roles of Stakeholders
Thecompany realizes the importanceof all groupsof stakeholders.The rightsof stakeholders thatareestablishedby lawor throughmutual agreementsare toberespected.Stakeholders consist of shareholders, employees, creditors, debtors,customers,auditors, independentassessors,andcommunitieswhichareequitabletreatedeachgroup. • ThecompanyprovidesCSRReport,focusedoncustomers,suppliers,competitors
andhumanrights,asapartofAnnualRegistrationStatement(Form56-1),AnnualReport(Form56-2)andcanbedownloadfromthecompany’swebsite.
• Thecompanyhassetpoliciestothestakeholdersasfollows Customers o TheCompanystrictlyhonorsagreementand regularlycoordinateswith
itscustomers todeliverproductsofqualitymatchingcustomers’needsinatimelymanner.Besides,thecustomerconfidentialitypolicyhasbeenannouncedtoallemployees.
Employees o Thecompany recruits, adopts, andhires staffbasedonqualifications,
experience, andcompetence for suitablepositions aswell as equallypromotestheircareeradvancement.TheCompanyprovidesafullrangeofsocialwelfareservicesandbenefitstoouremployeessuchasmedicalexpensereimbursement,accidentalinsuranceandprovidentfundinordertotakecareoftheemployeesforlong-term.
o Thecompanyhasprovidedasafetypersonaltoestablishsafetyandhealthforemployeesintheworkplace.However,thereisnodisclosureofaccidentstatistics.
o Thecompanyhassetapolicytodevelopemployees’knowledge,skills,andexpertisethroughimportanttrainingcoursesandalsosendallrecordstotheDepartmentofSkillDevelopmentofThailand.
o Theboardofdirectorshaspolicy irrelevantwithhuman right in social responsibilityreport.
Government o TheCompanynotonlystrictlyfollowstheprovisionsoflawsandregulations
issuedbysupervisoryagenciesbutalsosupportspublic-sectorprojectstofosterthebestinterestsofsociety.
82 83Annual Report 2018 CMO Public Company Limited
Suppliers o TheCompanytreatsallsuppliersfairlyandappropriatelyaswellasoffers
anopportunityfornewsupplierstopresenttheirsproductsandservices. o The company has nowritten policy about performingwith creditors.
However,thecompanycomplieswiththetermsofloansandobligationstoitscreditorssuchasbusinesscreditorsaswellasstrictlyfollowscontractsandlaws.
Competitors o TheCompanytreatsitscompetitorsprofessionallyandfairly.Besides,the
companyparticipatesintheestablishmentoftheBusinessofCreativeandEventManagementAssociation(EMA)whichaimstosetastandardofeventbusinessqualityandprovidetheknowledgetopublic.
Society o TheCompanyhassetpoliciestobenefitthesocietyinthefieldsofartand
culturesuchasbeingasponsoroftheBangkokSculptureCenter,non-profitorganizationthatpromotesandsupportslocalThaisculptors.Atthecenter,visitorscanseeanumberofsculpturesbylocalartistswithfreeofcharge.
o Even though thecompanyhasnot yetcompliedwithanenvironmentalmanagementstandard(ISO),thecompanypersuadesemployeestoawareofenvironmental issues.Furthermore,apolicy regardingre-useofsuchmaterialsisintroducedtoemployees.
• Thecompany’sinformationtechnologydepartmenthassetapolicywhichinformsemployeestoavoidcopyrightandintellectualpropertyviolations.
• The company has not yet applied for the certification of its anti-corruption complianceprogram.However, theboardofdirectorsplaces importanceoncounteringcorruptionandhasassigned themanagement team tostudyandapplyacodeofconductforsuppliersaboutanti-corruptioncomplianceprogram.
• TheBoardofDirectorsevaluatesthecorporatefraudulentrisksviaanAuditorassessmentandcontrolsagainstcorruption.Besides,theAuditCommitteehasreviewedtheinternalcontrolmeasuresincludingthesupervisiononcompliancewiththeprincipleofanti-corruptionmeasuresaswellastheriskassessment.IthasalsoprovidedrecommendationsandreportedonreviewresultstoprotectagainstcorruptionmeasurestotheBoardofDirectors.Theresultsoftheinternalauditcarriedout inaccordancewiththeprincipleofanti-corruptionmeasuresrevealednoweaknessordefectintheinternalcontrolsysteminmaterialmatters,andtheAuditCommittee isoftheopinionthattheCompanyhasappropriateinternalcontrolsystem,sufficientsupervisionofrisktoprotectagainstcorruptionmeasures.
• Thecompanynotonlyallowsparticipationofstakeholderstoreportdishonestyornon-compliancewiththeirrightsbutalsosetawhistleblowingpolicyforanemployeewhoexposesanykindofinformationoractivitythatisdeemedillegal, unethical, or not correctwithin anorganizationdirectly to the internal audit department via Email: [email protected] the company secretary departmentviaEmail:csi.cmogroup@gmail.com.Thecompanyassurestosecretlyinvestigateandallinformationwillbekeepconfidential.
• Thecompanyhassetaremunerationpolicyincludingsalaryandannualbonus,inlinewiththecompany’soperatingresultsandtheperformanceofeachemployee.
• Thecompanystrictly followsall applicable laws, rules,and regulationsof allstakeholdersincludinglabor,customers,competitorsandenvironment.Besides,thecompanyhasneverviolatedanylawsandregulationsandneverpenalizedbySecuritiesandExchangeCommissionandtheStockExchangeofThailandduetonon-disclosureimportantinformationintimelymanner.
Section 4 – Operational Transparency and Information Disclosure
Thecompanyemphasizesonoperationaltransparencyanddisclosureofsufficientinfor-mationthataffectsthedecisionsoftheinvestorsreliably,regularlyandintimelymanner. • Thecompanyhaselucidated the top10 listsofmajorshareholders including
boardofdirectorsandexecutivesintheannualreport. • TheCompanyhasreportedthesignificantinformationviatheSETForm56-1
andannualreport56-2aswellasitswebsitewithin120dayssincetheendofaccountingperiod.
• The company’s annual report consists of complete information useful for shareholders.Itsdetailiscoveredasfollows:
o Objectivesandgoalsofthecompany o Financialstatementandperformanceincludingfinancialanalysis,theindustry
andcompetencyanalysisreport o Businessstructureincludingdirectandindirectholdingthroughthecompany,
subsidiaries,associates,jointly-controlledentityandothercompanies o Businessrisksanalysis,effectandprotectionagainstrisks o Goodcorporategovernancepractices o Dividendpolicyincludingreasons,rateofpaymentandrelatedinformation. o The information regardingdirectorsand independentdirectorssuchas
names,qualifications,experience,roles,meetingattendance. o Disclosureofremunerationforeachdirectorandtotalremunerationforall
executives.Theboardofdirectorscarefullyconsidersonremunerationoftheboarddirectorsandexecutives.Suchremunerationisinthesamelevelasthatofferedbyothercompanies inthe industryandgoodenoughtoattractandkeepqualifieddirectors.
o Thetrainingrecordsofeachdirector. o Disclosureofconnectedtransactionsincludingnames,relationshipofthe
connectedpersonsandalsopricingpolicycompliedwiththeregulationsoftheStockExchangeofThailandandSecuritiesandExchangeCommissionandapprovedbytheboardofdirectors.
o Apolicygoverningconflictsof interest, thecompanyhasassigned thedirectorsandthetop4listsofexecutivestopresenttheconflictofinterestreportaccordingtotheStockandStockMarketActB.E.2551(A.D.2008)
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o ApolicywhichtheBoardofDirectorswillmonitorallrequiredactionsinaccordancewiththerelatedmeasures.AnychangesintheshareholdingofadirectorortopexecutivemustbereportedineveryBoardofDirectors’meeting.Besides,thecompanydisclosestheshareholdingofadirectorortopexecutiveatthebeginning,duringandtheendofyear.
o Thefinancial statementswhichare reviewedandexpressedunqualifiedopinionbyexternal auditor, acceptedby theSecurities andExchangeCommissionThailand.Thecompanyalsorevealsauditfeesincludingotherfees(ifany)
• ApartfromtheSETForm56-1andannualreport56-2,thecompanyhasotherchannelsforcommunicatingwithshareholdersasfollows
o TheInvestorRelationsDepartmentinordertocoordinatewithshareholders,propertyanalysts,stockanalysts,relevantgovernmentagencies,andgen-eralpeopleinordertopresenttheminformationandmakethemconfidentthatthecompanyisabletodiscloseimportantandcorrectinformationinatimelyandtransparentmanner.
o Thecompany’swebsitehttp://www.cmo-group.cominbothThaiandEnglishwhichcontainscompany’sinformation,news,financialstatements,majorshareholders,company’sstructure,directorsandexecutive information,investorrelations,company’sregulation,annualreportetc.
o Pressconferencesandtheexecutivesinterviewaboutbusinesscircumstance • Duringyear,thecompanyhasdeliveredthefinancialstatementsintimelymanner
andneverbeendecreedtorectifythefinancialstatementbytheSecuritiesandExchangeCommissionThailand.
Section 5 – Responsibilities of the Committee
Thecompany’sboardofdirectorsconsistsofmemberswithsuchqualitiesasleadership,vision,experiences,andexpertiseinrequiredfieldstofacilitatethecompanyoperationandtobestbenefittheshareholders. • Thedirectorsandmanagementexecutivesparticipateinthecompanyoperation
toassurethatthepolicies,directions,strategiesandmanagementstructuresareefficientandeffective.Furthermore,thedirectorsandmanagementexecutivesalsoparticipateinthemissionandvisionstatementswhicharereconsideredeverycoupleofyears.
• Thecompanyhasdevelopedthecodeofconductforthedirectors,executivesandemployeesinwriting.Inordertobeawareofitanduseitastheguidelineforexecutionoftheirdutieshonestlyandmorallyandmustnotusetheinsiderinformationaspersonalinterest.Thecompanyhasdisclosedthecodeofconductinitswebsite
• Thedirectorswillholdthepositionforatermofthreeyears.
• Thecompanyhasnotsetapolicytolimitaperiodoftheindependentdirector.However,whentheindependentdirectorholdsadirectorshipover9years,thecompanywillconvincesshareholdersthatthedirectorisstillabletoperformadirectorshipindependently.
• TheBoardofDirectorsiscomposedofsixdirectors,threeofwhichareindependent directors.ThecompanydisclosesinformationontheappointmentofeachdirectorincludingpositionstartdatetoshareholdersintheSETForm56-1andtheannualreport56-2.
• Thedirectorsormanagementexecutiveshaveneverbeenanauditorof thecompany,subsidiary,associate,majorshareholderorcontrollingperson,andnotbeasignificantshareholder,controllingperson,orpartnerofanauditfirmwhichemploysauditorsofthecompany,subsidiary,associate,majorshareholderorcontrollingperson.
• Therearefivedirectorswhoarenotamemberofmanagementandhaveafullunderstandingofaccounting,finance,law,architectureandbusinessmanagement.
• Theboardofdirectorhasnoanyindependentdirectorwhotakesapositionasdirectorformorethan5listedcompanies.
• Thereisnodirector,whoisamemberofthemanagement,holdsadirectorshipmorethan2companies.
• TheBoardofDirectorsparticipatesinthecompany’soperationwhichcomplieswith theSecuritiesandExchangeAct, the rulesand regulationsof theStockExchangeofThailandandtheSecuritiesandExchangeCommission.Thisyear,norecordoftheBoardofDirectorswhohasviolatedtherules.
• Thecompanyhasnotyetestablishedacomplianceunithowever,acompany’ssecretaryisassignedtosuggestaboutlawsandregulationsthatthecommitteeneedstoknowandcomplywith.
• TheAuditCommitteetakesresponsibilitiestoreviewoftheinternalcontrolsystemthroughtheinternalauditdepartmentwhichreportsdirectlytotheauditcommittee.ThequalificationsandexperienceoftheinternalauditmanageraredisclosedintheCompany’sannualreport.
• Thecompanydisclosesthereportofauditcommitteewhichprovidesinformationasfollows:
o Disclosureofeachauditcommitteemeetingattendance o Reviewoftheinternalcontrolsystemthroughtheinternalauditdepartment,
reportsdirectlytotheAuditCommittee. o Reviewandconsiderationofthefinancialstatementwhichispreparedunder
theaccountingstandardacceptednationwide.Appropriateaccountingpolicywillbeselected.Preparationofthefinancialstatementwillbeperformedinaregularandcarefulmanner.Sufficientinformationwillbedisclosedinthenotestothefinancialstatements.
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o Reviewcompany’scompliancewiththeSecuritiesandExchangeAct,therulesandregulationsoftheStockExchangeofThailandaswellasotherrelatedlaws.
o Selectionandappointmentofexternalauditor,acceptedbytheSecuritiesandExchangeCommissionThailand.
o Theconclusions/commentsontheinternalcontrolsystem • Thecompanyhasnotrevealedaprocedureofdirectorrecruitment.Inpractice,
however, theboardofdirectorhasadiscussion tonominateanappropriateperson.Oncethenewdirectorisadopted,thecompanywillinformtotheStockExchangeofThailandandtheSecuritiesandExchangeCommission.
• The company engageda consulting firm to explore a candidate nominatedforindependentdirectoratfirsttime.Toensurethatthecompanyobtainedan independentlyexperienceddirector.
• Newdirectorswillbeorientationaboutallimportantinformationforthecompany. • TheCompanysupportsalldirectorstoparticipateintrainingcourseswhichare
appropriatefordirectors.AlldirectorsmustattendedtrainingconductedbyThaiInstituteofDirectorsAssociation(IOD).ThedirectorstrainingprogramsarealsodisclosedintheAnnualReport.
• Thecompanypromotesthetrainingandeducationforthoserelatedtosupervision ofthecompany’sbusinessoperation,includingtheexecutives,secretaries,andinternalauditunit, for improvementoftheirperformance.Relatedpersonsareencouraged toparticipate in the trainingarrangedby theStockExchangeofThailandorrelevantassociations.
• ThecompanyhasfollowedthePublicCompanyLimitedAct,whichrequirestheboardofdirectorstoholdatleastonemeetingeverythreemonths.Theboardhaspreparedthemeetinginadvanceandcalledforadditionalmeetingasnecessary.In2018,therewere6meetingsoftheboardofdirectors.Theaverageattendanceofthemeetingsis75percent.
• Thesecretary informed thedirectors for themeetingdateandsent them theagendasanddocumentsatleast5daysinadvance.EachMeeting,thedirectorsareallowedtoexpresstheiropinionindependently.Besides,thecompanyhassetaquoruminwhichdirectorsatleasttwothirdshavetoattendthemeeting.
• Thecompanyhasnever impeded the independentdirectors toconduct self- meetingwhichisusuallybeforetheauditcommitteemeetingasnecessary.
• TheRiskManagementCommitteehasbeenestablishedandariskmanagementpolicywaswrittenandapprovedbytheRiskManagementCommittee.TheRiskManagement Committee consists of the head of each departments and the chairmanisMr.AnantGatepithaya,anindependentdirector.ARiskManagementconferencewasheldtobeensuredthatriskswillbecarefullydeterminedandcontinuouslymonitored.
• Thecompanydiscloses its InternalControlwhich isconsideredby theauditcommitteeintheSETform56-1andtheannualreport56-2.
• Theboardhasapolicytoavoidconnectedtransactionsoranytransactionsthatmaycauseconflictofinterest.However,intheeventofaconnectedtransaction,thecompanyhasassignedrelevantdivisions togather information relating tosuchconnectedtransactiontopresenttotheauditcommitteewhowillconsiderandpresenttheopinionsconcerningsuchmattertotheboardofdirectorsandtheshareholdersforapproval,whichcompliedwiththeregulationsoftheStockExchangeofThailandandSecuritiesandExchangeCommission.Besides,thestakeholdersofsuchmatterwillnotbeallowedtomakeanapprovalvote.
• ThecompanyhassettheresponsibilitiesofdirectorsandalsodiscloserauthoritieslevelinAnnualRegistrationStatement(Form56-1),AnnualReport(Form56-2).
• Currently,thecompanyhasnotyetestablishedothersubcommitteessuchas RemunerationCommittee,NominationCommittee.However,theBoardofDirectors has realized their importanceandmayplaceconsideration to instituteother subcommitteesinanappropriatecircumstance.
• Thecompanyprovidesasecretarywhoisassignedtosuggestaboutlawsandregulationsthatthecommitteeneedstoknowandcomplywith.Currently,thecompanysecretaryisChiefFinancingOfficer,whoeducatedinthefieldoffinance,herqualificationsandexperiencesarealsodisclosedinthecompany’sannualreport.
• Thecompany’sBoardofDirectorshasappointedanauditcommittee,consistsofthreeindependentdirectorsaccordingtoregulationssetbytheStockExchangeofThailand.Besides,qualificationsandexperiencesoftheAuditCommitteearedisclosedinthecompany’sannualreport.ThereisaPresidentofAuditCommitteewhohasknowledge,expertiseandexperienceinthefieldsofaccountingandfinance.
• TheAuditCommitteeperformed itsduties independently,asassignedby theBoardofDirectorsinaccordancewiththeAuditCommitteeChartertoverifytheadequacyofcorporategovernanceinlinewiththeregulationsandgoodpracticesguidelinefortheauditcommitteesoftheSecuritiesandExchangeCommissionandtheStockExchangeofThailand.Thesedutiesincludedreviewingthefinancialstatementsandcorporategovernancepractices,assessingtheriskmanagementsystem, internal control and internal audit systemsand fraud investigations, proposingtheappointmentofexternalauditorsaswellasprovidingcommentsontheappointment,removal,transfer,ordismissaloftheheadoftheInternalAuditDepartment.
• TheAuditCommitteeholdsatleastonemeetingeverythreemonthsregularly.In2018,therewere4meetingsoftheAuditCommittee.ThemeetingattendanceisdisclosedinthereportofAuditCommittee.Duringyear,twodirectorsattendedeverymeetingwhereastheotherdirectorattendedtwomeetings.Theaverageattendanceofthemeetingsis83percent.
• Currently there areonlyAudit committeeandRiskManagementCommittee established in the company.However, the companymay establish other committeeifnecessary.
88 89Annual Report 2018 CMO Public Company Limited
• The company hasRiskManagementCommittee and the president is an independentdirector.Othermembercamefrom14businessunitsincompany.
• TheBoardofDirectorsconsistsofsixmembers inwhich threeof themare independentmembers(50%).Besides,thecompanysupportsfemaledirector with professional qualifications to the position of theBoard of Directors. Currently,chairmanofthecompanyisMissAnusraChittmittrapap.
• Therearefivedirectorswhoarenotthecompanyexecutives(83%). • Thecompanydisclosuresadefinitionofdirectorindependencewhichcomplied
withthestandardsetbySecuritiesandExchangeCommissionandtheStockExchangeofThailandintheSET56-1.TheIndependentdirectorsshallnotbeanemployeeandnotbeapersonrelatedbybloodorlegalregistrationofanexecutive,majorshareholderinordertobeexactlyindependent.
• Currently, theannual reporthasnotyetcontaineda reporton theBoardofDirectors’responsibilitiesforFinancialStatementspublishedin.However,thecompanyprovidesareportonManagementExecutive’sResponsibilitiestogetherwithanIndependentauditor’sreportforFinancialStatements.
• With theshareholder’sapproval, theCompanyused tooffera right to their executivesandemployeeswhohaveover5yearsworkingperiodforpurchasingcompany’ssharesaslong-termincentive.Therightwouldbeexpiredwithin3yearsandtheexercisepricewasnothigherthanthemarketpriceatthetimeofallocation.Besides,therighthadbeendistributedtotheappropriatehierarchyofthedifferentexecutives.
• The company has not yet applied for the certification of its anti-corruptioncomplianceprogram.However,theboardofdirectorshasplacedimportanceoncounteringcorruptionandassignedthemanagementteamtostudyaboutanti-corruptioncomplianceprogram.Furthermore, theAuditCommitteehasreviewedtheinternalcontrolmeasuresincludingthesupervisiononcompliancewiththeprincipleofanti-corruptionmeasuresaswellastheriskassessment.IthasalsoprovidedrecommendationsandreportedonreviewresultstoprotectagainstcorruptionmeasurestotheBoardofDirectors.Previously,thecompanyandthemanagementexecutiveshavenotbeenconvictedofviolatingsecurityorstockexchangelawsbyanagencywithauthorityunderthatcertainlaw.Suchwrongfulactsincludethoseinvolvedwithunfairtradinginsharesorperpetrationofdeception,fraudcorruptionorimmoral.
• Thecompanyhasneverhadanincidentwhichitsexecutivesresignedfalloutfromanissueofcorporategovernance.Besides,thedirectorshaveneverbeendisgracedduetoresponsibilityfailure.
8.1 Confidentiality and use of internal information
Thecompanyrecognizestheimportanceofprotectingthecompany’sinternalinformation toprivateinterestsandexternalinformationtoprotectagainstimpactdamagethatwouldbecausedtothecompany’sreputationandbusiness.Prohibitingtodotrading2weeksbeforefinancialannouncementtopublicaswellasnottradingsecuritieswithin7days. Inorder tomaintain thecompany’sconfidentialityandprudence is necessary,thecooperationofemployeesatalllevelsareisconsideredtobeimportant. If employeesdisclose sensitive information of the company, they shall be guilty accordingtothedisciplinaryregulationsofthecompany.
8.2 The remuneration of the external auditors 8.2.1 The remuneration of the external auditors
Thecompanyandsub-companypaidfortheexternalauditor’sremunerationin2018toANSAuditCompanyLimitedtotally2,719,064Baht.
Unit:Baht
Type of Return 2018 2018 Increase/Decrease
Budget Actual Baht %
Auditfees 1,330,000 1,607,060 277,060 17.24%
Auditfees(Subsidiary) 1,060,000 1,112,004 52,004 4.91%
OtherServicefees - - - -
Total 2,390,000 2,719,064 329,064 13.77%
8.2.2 Other Fees - None -
90 91Annual Report 2018 CMO Public Company Limited
09CORPORATE SOCIALRESPONSIBILITY
BangkokSculptureCenter
9.1 Policy and Overview
The policy of the Board of theDirectors in operating the businessofthecompanyandsubsidiariesisnotonlytogainbenefits for thecompany,butalso tobeawareofcorporate social responsibility and environment as well as the stakeholders,assignifiedinmanyactivitiesorganizedjointlybythecompanyandemployeesinthepastyear.
(1) Fair Business Operation
The principles that the company always adheres to whenoperating itsbusinessare fair andequalpractice,bothwithbusiness partners and clients, to perform duties honesty, by encouraging all employees to abide by the policy andbusinessintegrity,tobehonestandtransparent,nottoseekpersonalbenefits thataredisaccordwith thebenefitsof thecompany and the stakeholders, including keeping business confidentiality.
(2) Anti-Corruption
Thecompanyhasaconcretepolicytopromoteanti-corruption,bothatinternalandexternallevels,emphasizingontheacknowledgementofthepolicybymanagement ofeveryunit.Then,themanagementshallconveyittoalllevelsofemployeeshowto behave straightforwardly,with righteousness and accountability in their dutiesstrictly,nottoinvolveinallformsofcorruption.
Moreover,companyhasthenoticeboxforeveryonetosharetheiropinion,commentandadviceorcorruptioninformationdirectlytomanagement.
(3) Respect in Human Right
ThecompanycompliesstrictlywiththeLaborLaw,treatsallemployeesfairlyandequallywithoutanyprejudiceordiscriminationbygenderorreligion.Thereshallnotbeneitherobstructionnorprivilegebestoweduponanyparticularpersonasspecialcaseasaresultofdifferencesinnationality,religion,gender,age,language,physicalorhealthconditionaswellassocialstatus,socialbelieforsocialopinion.
The company promotes employee participation in order to create good working relation.Thereisaproceduretofollowup,monitorandcontroltopreventbusinessoperationofthecompanyanditsemployeesfromactingortakingpartinignoringandviolationofhumanright.
(4) Fair Practice to Employees
Thecompanyiswellawareofhowpreciousresourceeachemployeeistothecompany, asadrivetomoveforwardthecompanytogrowsecurely.Therefore,thecompany attends to and treats all employees equally including supporting development ofdifferentaspectsofpotentialitiesforself-developmentandprogress.
In2018,thecompanyorganizedactivitiesinpromotinganddevelopingofpersonnelinthefollowingmajorareas,namely
1. Medical Checkup: Proper programmes were provided to match theage rangesofemployees.Forconvenience, themedicalcheckupwas deliveredbyahospitaltotheofficepremise.Incase,anyemployeewasabsentonthedateofmedicalcheckup,suchemployeecouldgotothehospitalfortheservicefreeofcharge.
Inaddition,thecompanynegotiatedwiththehospitalforextraprivilege forcheckupsofotheritemsbesidestheitemsspecifiedintheprogrammes atspecialrates.
2. Provision of additionalwelfare beyondwhat is stipulated by law suchasmedical treatmentas inorout-patient, insurancecoverageforden-taltreatment,eyesightcareincludinggroupaccidentinsurance,welfarecontributionforvariousoccasions(marriage,ordination,andfuneral).
3. Provideloansourcesfordomicileatspecialrate
4. Encouragesavingofemployeesbyestablishingvoluntaryprovidentfund
5. Supporttrainingcoursesandseminarsforemployeesbothin-houseandoutsidethecompanytogainadditionalknowledgerelevanttojobsandduties.
6. OrganizeactivitiesthatpromotecorporateinternalrelationshipsuchasNewYearparties,makemerittomonks(photosofactivities),teambuilding (photosofactivities),tobuildupsolidarityamongemployee.
7. Providefitnessroomwithprofessionaltrainerforcommonuse.
(5) Responsibility for Customers, Investors, Partners, Employees, and Other Stakeholders
Thecustomers, investors,partners,employees,andotherstakeholdersshouldbetreated equally under accurately disclose, transparency and timely information. We also provide standard services to serve customers’ need and lead to gain revenueandbusinesssustainability.
It ismore than justwell-accomplishmentof jobsasexpectedby theclients.Thecompanyispleasedtogiveadviceandassistanceforimprovementevenforthejobwhichisnotunderthecompany’sresponsibility.Thisisbecausethecompanyworkstogetherwithclientsaspartner,notjusttoworkashired.
94 95Annual Report 2018 CMO Public Company Limited
Stakeholder
1.Employee
2.Customers
3.Partners
4.Bank
5.Shareholder,
Investor,
Analyst
6.Social&Community
7.Environment
8.Competitors
Communication Channels with Stakeholders
(6) Keeping the Environment
Theresponsibilitytowardsenvironmentisanothersubjectwhichthecompanygivespriorityto,byattendingtobothinternalandexternallevels. Internal 1. There is a campaign on energy saving for common interest such as
switchoffelectricity-turnoffwatersupplywhennot inuse, turnoffairconditionerduringlunchtime,turnoffcomputerswhennotinuse.
2. Cleanairconditionerregularly 3. Whenpurchasenewequipment,considerworkingfunctionandenergy
savingfeature 4. Reduceunnecessarypaperusage 5. Sortgarbagebeforedisposal 6. Hasconcernaboutreducinguseofenergytohelptheenvironment.Ournew
officebuildingisdesignedtohaveaglasswalltohelplowerlightingusein daytime.
External 1. Selectmaterialsthatcanberecycledforbuildingstructure,takinginto
considerationtheleastgarbagedisposal 2. Whenthereareagreatnumberofprojectstaff,acentralservicepoint
for foodanddrinkingwater isprovided inorder to reducequantityofgarbageandfoodcontainers
(7) Participation in Community and Social Development
Participation in community and social development is widely-opened for allemployees who can propose various projects to call for cooperation from olleagues.Inthepastyear,therewerealotofprojectsthatcompletedsuccessfullywiththecooperationofeveryemployeesuchasthedonationinkindforahomefororphans,meritmaking,theimprovementofresidentialunitsfororphans.
(8) Innovation and Publication
Company always considers to deliver works which match up with client satisfactionandnotincreasepollutiontoenvironment.Mostoftheevent,teamwillchoosereusematerialsuchasusingLEDScreenreplaceInkJetonvinylplasticorWoodScreen.LEDScreencanbeusedandadjustinvariousdirection.
Responsibility for the Stakeholders EngagementBuildingrelationshipwithStakeholders,dividesStakeholdersinto8groups,includingShareholder,Customer,BusinessPartners,BusinessCompetitors,Creditors,Employees,CommunityandSocietyandCompetitor.
Communication
- Activitiesandseminar
- Othercommunications
- Job’sevaluation
- Customer’sneed
- Setupagoodprocedure’s
standard
- ProcurementDepartment
- Exchangeideasandsuggestions
- Share knowledge and
working skill
- Companyvisit
- Other informations
- AnnualGeneralMeeting
- Annualreport
- InvestorRelation
- Companyvisit
- BangkokSculptureCenter
- Reduceenergybyotherchanel
- Energysavingcampaign
- Annualreport
- News from other media
Expectation
- Progess in career path
- Suitablebenefits
- Good welfare
- More knowledge
- Qualityservice
- Customerconfident
- Goodprocurementprocess
- Follow the conditions
- Actbusinesspartnerswithfairness
- ComplywithBank’sregulations
- Highreturn
- Stockvaluation
- Acttoallshareholderequally
- Business’Growth
- Art’sKnowledge
- Academic’sKnowledge
- Participateinenergysaving
campaign
- Fair competition
- Donotseekingconfidential
information from competiors
bycorruptways
Feedback
- Treatingemployeesequally
andimpartially
- Providingsuitable/appropriate
providentfundandbenefits
- Providingapplicabletrainingcourse
foremployee’sindividual
development.
- Providingemployeeengagement
activities
- Completeness&Efficiencyservice
- Improveemployee’sskill
- Technology+Innovation+
New Idias
- Strictlyoperation
- Cantrustworthyandaudit
- Paymentondue
- Loanrepaymentontime
- businessprofits
- Goodgovernance
- Acttoallshareholderequally
- InvestorRelationteam
- Disclosure
- Haveanintern
- Shareknowledgeandskillofevent
management
- Saveenerginecampaign
- Paperuseless
- Businesspolicy
Result
- Engagedemployee
- Reduceemployeeturnover
- Employeefeelsecureandhappy
withtheirjobandworkplace.
- Customer’ssatisfied
- Fasinateandbecomeapermanent
customer
- Partnership
- Haveagoodpartnership
- Ongoingbusiness
- Gowthing together
- Partnership
- Supportourbusinesscontinuously
- Keeponsupport
- Trusting
- Academyandcommunityappreciate
- Nicerelationshipwithcommunity
- Interested form new generation
- Employeerealizethevalueof
resources
- CostSaving
- Ethicalbusiness
96 97Annual Report 2018 CMO Public Company Limited
9.2 Activity for social and community
9.2.1 Art Knowledge
TheBangkokSculptureCentre isanon-profitprivateorganization,established topromoteThaiart.Thecenterisprivatelyfundedandopenforpublicvisit.
Bangkok Sculpture Center is a non-profit private organization, established to promoteThaiartbypresentingthelongjourneyofThaisculpturehistory.Thiscenteris free admission for public, students, andcollege students including themediachannels.
BangkokSculptureCenter is in thecorporatesocial responsibilityofCMOPublicCompanyLimitedwithautilityareaof4,000squaremeters.Thecollectionshowcases remarkablesculptures from theancientBuddhistartera to thepresent timewithmorethan200artpieces.
Bangkok Sculpture Center aspires to promote and support sculpture art of ThailandbygatheringtheimportantThaisculptures,lendingthesculpturesforpublic display and organizing exhibitions. At present, Bangkok Sculpture Center has abranchatBangkokArtandCultureCentrethatfacilitatesandattractsmorevisitors.BangkokSculptureCenter’sbranchorganizesthetemporaryexhibition3timesperyear.
For more information, please visit http://www.bangkoksculpturecenter.org
98 99Annual Report 2018 CMO Public Company Limited
In2018,BangkokSculptureCenteronNuanchanRd(SoiNuanchan56)welcomedmorethan4,200visitorsandBangkokSculptureCenter’sbranchhas35,620visitors.
9.2.2. Academic Knowledge
DuetoCMOGroupPLCisleadingcompanyofprovidingultimateexperienceandmanagingeventswithholisticsolutions inAsianbyfocusingon“creativity”whichisourbusinessphilosophyformorethan3decades.Asaresultofthisimportance,manyleadingofacademicinstitutionsanduniversitiesaroundcountryareinterested to study our operation and academic lecture for instances event management, creativitythinkingandcompletedmediasolutionaswellasbrandingandcooperatecommunicationskill.
100 101Annual Report 2018 CMO Public Company Limited
CMOGroupPCLplayaroleasasecondschoolforstudentsbyarrangingspecialistsindifferentexpertisetobecomelecturersinordertoprovideknowledge,skillsandexperiencesbeyond theclassat theschooloruniversity.Thecoursewill includeeventmanagementfrombeginningdesign,preparation,findingequipmentandhu-manmanagement,thepurposeistomakestudentsunderstandclearlyinjobdesignandoperation.
In 2018, thereweremany faculty and studentsmore than 30 institutions in both publicandprivatesectionstovisitusbyeachofvisitisfreeofcharge.
102 103Annual Report 2018 CMO Public Company Limited
10INTERNAL CONTROL AND RISK MANAGEMENT
Imaginia PlaylandBuilderStudio
CMO Public Company Limited has established suitableand efficient internal control and internal audit system that governs the financial,management andoperational aspects for greater effectiveness and efficiency in accordance withrelated laws and regulations. Meanwhile, an emphasis isplaced on continuous improvement according to COSO(The Committee of Sponsoring Organizations of TreadwayCommission. The Audit Committee has been establishedto assure internal control measures as well as providing adviceandreportingonauditresulttotheBoardofDirectorsoftheCompanyonaregularbasis.Inaddition,theCompany has been audited to ensure a correct financial report with sufficientdisclosureaswellascompliancewiththeSecurities andExchangelaw,theregulationsoftheStockExchangeofThailandandbusinessrelatinglaws.
Registration system for Essilor 12th Anniversary
byCMO
ThecompanyhasappointedtheAuditCommittee,comprisedofthreeindependent directors,whichperformsdutiesandresponsibilities inaccordancewiththeAudit Committee Charter. Operation of the Audit Committee is consistent with the regulationsoftheStockExchangeofThailandandSecuritiesandExchangeCommission byusingtheinternalauditdepartmentasatool.TheheadofInternalAuditandtheaudit committee secretary isMr. Vuttiphan Tanametanont, Internal AuditDirector, which has been appropriately considered by the Audit Committee. To be an independentdepartment,theAuditCommitteewillconsiderappointing,promotingordismissingtheheadofinternalauditasbedefinedintheAuditCommitteeCharter.
TheAuditCommitteeplaysakeyroleinapprovingtheinternalauditplan,reviewing thereportoftheauditresultsandprovidingrecommendationsforefficientandeffective practices.Consequently,theinternalcontrolsystemcanbeassuredthatithasefficient andsuitablepracticeswithcurrentbusinesscircumstances.Furthermore,theAuditCommitteeperformeddutiestoreviewthequarterlyandannualfinancialstatementsand also connected transactions between the company and its subsidiaries andrelatedparties toensure that thecompanyhasagoodcorporategovernance. IntheopinionoftheAuditCommittee,thecompanyhasagoodbusinesssupervisionsystem in accordancewith the corporate governance principles and appropriateandsufficientinternalcontrolsystem.Theinternalcontrolsystemhaspresentednotransactionsthatessentiallyaffectedthecompany.
Besides,theCompany’sauditorisANSAuditCo.,ltd,whichhadauditedquarterlyandannualfinancialstatementsof2018aswellastheCompany’sinternalcontrol.Theauditorhasnotfoundanyobservationanddefectswhichwouldhaveanysignif-icantimpactontheCompany’sfinancialstatements.
TheBoardofDirectorsdeterminedtheinternalcontrolwhichhasbeenanalyzedbytheAuditCommittee.Thiscanbeconcluded thatCMOGrouphasdesignedand developeditsinternalcontrolsysteminefficiencyandeffectiveness.Theorganization chart has been determined appropriately with the business plan and business environment. Each department has its responsibility and can be independentlyverifiedeachother.Besides,a riskmanagement isoneof theagendasplacing inanadministrativeconferencetobeensuredthat riskswillbecarefullydeterminedandcontinuouslymonitored.Besides,thecompanyrecruits,adopts,andhiresstaffbasedonqualifications,experience,andcompetence for suitablepositions.Asaresult,thecompanyassuresthattheinternalcontrolsystemisefficientandsuitablepracticeswithcurrentbusinesscircumstancesandalsocomplieswiththeSecuritiesandExchangeAct,therulesandregulationsoftheStockExchangeofThailandaswellasotherrelatedlaws.
Name Mr. Vuttiphan TanametanontAge 42Position InternalAuditDirectorEducation MasterofCommerce,MajorinMarketing, MinorinAccountancy,TheUniversityofSydney Bachelor’sDegreeinAccountancy,KasetsartUniversityExperiences & Special training coursesExperiences 2015–Recent : InternalAuditDirector,CMOPlc. 2013-2015 :SeniorInternalAuditManager,CMOPlc. 2010-2013 : InternalAuditManager,CMOPlc. 2004–2010 :SeniorInternalAuditor,CMOPlc. 1999-2002 : InternalAuditor,SiamCementPublicCompanyLimitedSpecial training courses 2018 :LeadershipDevelopmentProgram,PerfectTrainingInstitute 2018 :RiskManagementandInternalControlProgram, ThaiListedCompaniesAssociation 2017 :AguidetojoinThailand’sPrivateSectorCollectiveAction CoalitionAgainstCorruption(CAC) 2015 :StrategicRiskManagement:ThailandProductivityInstitute 2014 :TheChallengingofSustainableDevelopmentfor AuditCommittee,SEC 2014 :RoundtableDiscussion:Practicalproblemsof RiskManagementandInternalControlSystem, RiskManagementandInternalControlClub, ThaiListedCompaniesAssociation 2010 :TheCognizanceofCorruption, FederationofAccountingProfessions 2007 :Areyoureadytobeagoodinternalauditor?, TheInstituteofInternalAuditorsofThailand 2006 :WhatanauditorcandoinordertohelptheAuditCommittee?, FederationofAccountingProfessions 2005 : InternalAuditwithValue-Addedintheorganization, TheInstituteofInternalAuditorsofThailand 2005 : ICTManagementForum2006:RiskManagement, TheInstituteofInternalAuditorsofThailand 2004 : Improvinginternalcontrolinordertobeapubliccompany, ANSAuditCo.,LTD
106 107Annual Report 2018 CMO Public Company Limited
11RELATED PARTY TRANSACTIONS
University ExpobyCMO
11.1 Connected Transaction
TheCompanyhadbusinesstransactionswithrelatedparties. Thesepartiesaredirectlyandindirectlyrelatedthroughcommon shareholding and/or directorship. The financial statements reflecttheeffectsofthesetransactionsonthebasisdetermined by the Company and the parties oncerned. For the yearsendedDecember31,2018, the significant transactionswithrelated parties can be summarized as Finance Statement disclosed in Item5of thenotes tofinancialstatement.Thisconnected transaction was in pursuant to normal businesstransactions.Thepriceofwhichwasmutuallyagreedandatthepropermarketprice.
Techsauce Global Summit 2018Videopresentationby The Eyes
Thefollowingspresent relationshipswithenterprisesand individuals thatcontrolorarecontrolledbytheCompany,whether
directlyorindirectly,orhavecommondirectorsorshareholderswiththeCompany.
%Equityinterest
ownedbytheCompany
Related parties Natureofrelationships 2017 2016
PMCenterCo.,Ltd. Subsidiarycompany 99.99 99.99
TheEyesCo.,Ltd. Subsidiarycompany 99.95 99.95
ExpositionTechnologyCo.,Ltd. Subsidiarycompany 40.00 40.00
MomentumSCo.,Ltd. Subsidiarycompany 56.99 56.99
MuseCorporationCo.,Ltd. Subsidiarycompany 69.99 69.99
ImaginiaCo.,Ltd. Subsidiarycompany 100.00 100.00
CMOShowCropCo.,Ltd. “JointVenture“ 39.29 39.29
RightmanCo.,Ltd. Commondirectorsandshareholdings - -
DuringtheyearsendedDecember31,2018and2017,theCompanyhadmovementsonloanstorelatedpartiesasfollows:-
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2017 2016 2017 2016
Short-term loans to related parties
Subsidiaries
Balanceatbeginningoftheyears - - 103,100 91,700
Increaseduringtheyears - - 27,500 35,600
Decreaseduringtheyears - - (36,400) (24,200)
Totalshort-termloantorelatedparties-net - - 94,200 103,100
Long-term loans to related parties
Joinventure
Balanceatbeginningoftheyears 35,580 - 35,580 -
Increaseduringtheyears 25,977 35,580 25,977 35,580
Totallong-termloantorelatedparties 61,557 35,580 61,557 35,580
Decreasedshareoflossfrominvestments
injointventuresovercostof
investmentsduringtheperiods (20,826) - - -
Less:Allowanceforlong-term
loanstorelatedparties (1,781) (1,781) (1,781) (1,781)
Totallong-termloantorelatedparties-net 38,950 33,799 59,776 33,799
11.2 Approval Procedure for Entering into a Connected Transaction
Thecompanyorsubsidiariesmayenterintoaconnectedtransactionwithapersonwhomayhaveconflictof interestwiththecompanywhenapprovedbytheboardofdirectorsorthemeetingoftheshareholderspriortoenteringintothetransaction.Thus,itdependsonthesizeofthetransactionasstipulatedbytheStockExchangeofThailand.However,theconnectedtransactionthatthedirectorsorthepersonswhomayhaveconflictofinterestoranyotherconflictsofbenefitswiththecompany,thedirectorswhohaveinterestfromenteringintosuchconnectedtransactionshallbeprecludedfromhavingvotingrightsinthismatter.Forthispurpose,thisexecutionshallnotbeinthenatureofauthorizationthatentitleanactingpersontoapprovethe transaction for the directors or the personwhomay have conflict of interestorconflicts inanyformof benefitwiththecompanyorsubsidiaries.Except, it isthenormalbusinesstransactionorthetransactionthathavebeenapprovedbythe resolutionoftheboardofdirectorsmeetingattendedbyindependentdirectorsandtheframeworkforconsiderationhadbeenclearlyset.
11.3 Policy on Entering into a Connected Transaction in the Future
AuditCommitteeandthecompanyshalljointlysupervisetheconnectedtransactionthatshall takeplace in the future toensure that it is reasonableandapproved in pursuanttotheprocedureandtheNotificationoftheStockExchangeofThailandandtodisclosetheinformationontheconnectedtransactionclearly.
- ThistransactionisaprovidingfinancialassistancetosubsidiariesandJointVentureCompany.
- CompanywaschargeinterestrateatMORtoMOR+1perannumforsubsidiariesand5%perannumforJointVenture
Company.
110 111Annual Report 2018 CMO Public Company Limited
12MANAGEMENT’S DISCUSSIONAND ANALYSIS
Thai FightVisualEffect,Lighting,AudioSystem&SpecialEffectOperatedbyPM Center
Overview- Operation performance,financial status and significant changeIntheyear2018,totalservicerevenueofCMOgroupwasBaht1,449.10million, increasefromBaht1,362.24millionin2017orabout6.38%increasing.Dueto, entitle ofmarketing situationwas being continue recover into normal circumstance.Manyindustrieswereactiveinmarketingcampaignbyusingeventmarketing,duringyear2018.
Inoverall of2018, theeconomicenvironmentandpoliticalpressureweregettingbetterfromyear2017.Eventhough,therewassometensionfromtradewarbutitwasnotmuchaffecttointernaleconomic.Manybusinesses were step forward in their marketing strategy such as Retail Marketing Business,ConsumerProduct andEntertainmentBusiness. ThesecausedgoodeffecttoCMOGroup.InYear2018,CMOGrouphadmanynewbigprojectswhichwaslaunching,RoadShowandLearningCenter.
Forotherincomein2018wasdecreaseby35.59%fromyear2017.Mainly,itwasvenuerentalforcommercialandTV’sseriesandspecialcaseineachyearsuchassellingusedequipment.
As at 31 December 2018, CMOGroup had total assets amounted Baht1,156.92millioncompare to theyear2017atBaht1,180.33million.Total liability was Bath 707.60million in year 2018 comparewith Baht 733.45 millioninyear2017.
1.1 Revenues
In2016,CMOgrouphadrevenuefromserviceBaht1,449.10millionincreasedfrom1,362.24in2017byBaht86.86millionor6.38%.Thisincreasingwascausedbytherecoveryofinternalcountry’seconomicandnewclientsasweremention.Especially,the4thquarterwasthemostpeakperiodofmarketingevents.
FormthetableshownrevenuefromEventManagementServicewasincreasedaboutBaht113.85millioninyear2018.Dueto,CMOGrouphadmanybigProjectandRoadShow Project continued during the year 2018 such as Luxury Department Store, InternationalConferenceorLearningCenter.InpartofEquipmentRentalinyear2018,therevenuewasBaht597.45millioncomparewithBaht637.97millioninyear2017.Multimedia Business revenuewas increased fromBaht 22.63million in year 2017toBaht30.82millioninyear2018byexpandedtonewclients innewindustry.For Playlandrevenue,therewasverycloseamountfromyear2017atBath27.12millioninyear2018.
1.2 Cost of services and Gross Margin
Costofserviceswasslightlydecreasedfrom76.6%inyear2017to75.9%inyear2018.Dueto,Groupofcompanyhascontinuedcostefficiencycampaignfromtheyear,whichgavegoodresult.
1.3 Selling and administrative expenses
Selling and administrative expenseswasBaht 211.08million or 14.6%of total revenuesin2018comparewithyear2017whichwasBaht205.90millionor15.1%oftotalrevenues.Dueto,groupofcompanyhadalsocontinuedcostreductioncampaignwhichhasgoodparticipation.Beside,companywasacknowledgedtheallowancefordoubtfulaccountsofinvestmentinJointVentureCompany.
1. Results of Operations
1.4 Financial Expense
Groupofcompanyhascontinuallydecreased infinancialexpense fromyear2017.Companywasreorganizedcashflowbothaccountreceivableandaccountpayablebyusingappropriatefinancial instrument. In2018,CMOgrouphadfinancial costsBaht24.28millioncomparewithyear2017thathadfinancecostsBaht25.40millionor4.40%decreasing.
Forallowanceandimpairmentin2018,therewasrecordedtheallowancefordoubtfulaccountsofinvestmentinJointVentureCompany.Therewasadequateimpairmentoninvestmentwhichwasevaluatedbyexternalauditorandthecompanyregardingtofuturerevenueandbenefit.
1.5 Net profit
As a result of revenues, cost of service, selling and administrative expenses and financecostasabove,CMOgrouphadnetprofitBaht64.69millionin2018,whichdividedintoBaht52.93millionofequityholderofthecompanyandBaht12.03millionofnon-controllinginterests,comparedwithnetprofitBaht43.58millionin2017.
SeparatefinancialstatementhasnetprofitBaht9.68millioninyear2018,comparewithnetprofitBaht52.70millioninyear2017.
1.6 Return on Equity
Year2018,consolidatedfinancialstatementhasshownreturnonequity(ROE)atrate12.99andcomparewithrate9.32ofyear2017,whichshowedcontinuinggrowth.
SourceofCMOgroup’srevenuein2017compareto2016wasasfollow:
Sale(Million) Change
Business 2018 2017 % %
EventManagement 793.70 679.85 113.85 14.34%
EquipmentRental 597.45 637.97 -40.52 -6.78%
Multimedia 30.82 22.63 8.19 26.57%Playland 27.12 21.79 5.33 19.65%
Downy Premium Perfume Beads Press Conference by CMO
2018 2017
Returnonequity(%) 12.99 9.32
2. Liquidity and Capital Resources
Assets 2018 2017
(Unit:Million) Amount % Amount %
CurrentAssets 395.2 34.16% 406.7 34.46%
Property&Building 437.1 37.78% 460.1 38.98%
Equipment 171.0 14.78% 153.3 12.99%
Others 153.6 13.28% 160.2 13.58%
TotalNon-CurrentAssets 761.7 65.84% 773.6 65.54%
TotalAsset 1,156.9 100.00% 1,180.3 100.00%
114 115Annual Report 2018 CMO Public Company Limited
2.1 Asset
AsatDecember31,2018totalassetsofthegroupwasBaht1,156.9milliondividedbycurrentassetswasBaht395.2millionandnon-currentassetswasBaht761.7millionwhileinthesameperiodof2017,totalassetsofthegroupwasBaht1,180.3milliondividedbycurrentassetswasBaht406.7millionandnon-currentassetswasBaht773.6million.
Theportionofnon-currentassetswasdecreasedfromproperty,plantandequipmentcategory.Dueto,companyhadsoldtheobsoleteequipment,tosavemaintenancecostandthedepreciationcostoftheequipmentwasdoneincalculationeveryyear.
2.2 Work in process and Inventory
Inyear2018,companyhaswork-in-processandinventorybaht7.12millionwhichwaslongperiodeventandmuseumconstructionprocess.Thoseallwereinprocessofsubmitandapproval.Therewasnotissueinunderquality,outofdateordeteriorateinventory.
2.3 Quality of Account Receivable
2018 2017Accountreceivableturnover(time) 4.14 4.21Averagecollectionperiod(date) 88.19 86.60
Companyhas credit termpolicy about 60days for general client and longer for governmentclient.Year2018,companyhasaverageARdateat88.19daysslightly increase from 86.60 days in 2017. Therewas no effect to company cash flow management. Year2018,companyhaslongtermaccountreceivableover12monthbaht8.45million.Thereareinprocessofcorrectionandkeepmonitorfrommanagement.Allowancefordoubtfulaccountspolicywasappropriatelyapplyasrequirementfromexternalauditorandaccountingstandard.
2018 2017CurrentRation(time) 0.76 0.72DebttoEquityRatio(time) 1.31 1.52
3.1 Investment expenditure and Debt to equity ratio
CMOGroupwas invested in newbuildings,warehouse and studioswhichwere completesince2014.Companywascontinuedinlong-termloanrepaymentandsomewereclosed.Causeto,debttoequityRatiowasimprovedfrom1.52timesinyear2017to1.31timesinyear2018.However,CMOGroupstillhasinvestmentbudgetfornewequipmenteveryyear,tokeepbeingleaderinrentalbusiness.
3.2 Current Ratio
Current ratiowas slightly increased from0.72 times in year 2017 to 0.76 times inyear2018,Dueto,companycurrentassetwasslightlyincreasedgreaterthancurrent liabilityincomparing.
3.3 Leverage and Loan condition
CMOGrouphasbothshortandlongtermloanwithfinancialinstitute.Mostofthemwereusedforinternaloperationandcompanyinvestmentsuchasbuildingstudiosandequipment.AllofloanhasnosignificantinDebttoEquityRatiocondition.
3.4 Shareholders’ equity
AsatDecember31,2018thetotalshareholders’equityofthegroupwasBaht500.06million increasedfromBaht467.50million in2017causeby increasingofRetainedearningsandassetappraisalsurplus.
In2018,thegrouphadcashflowsfromallactivitiesasthefollowing; • NetcashfromoperatingactivitiesBaht234.18millionincreasedfromBaht
115.86millionin2017. • NetcashusedininvestingactivitiesBaht95.97millionwhichmainlyinvested
infixedassetsandfinancialproviding tosubsidiariesandJointVentureCompany.
• NetcashfromfinancingactivitiesBaht110.04million,causebyrepaymenttolongtermanddividend.
In2019themostimportantofforwardlookingfactorwhichimpactCMOgroup,aswellaseventbusinessinoverall,iseconomicfactorbothofinternalandexternal.But,year2019maygetbettercontinuefromyear2018.Especiallyinyear2019,thisyearwillhasthemostimportantoccasionforThaiPeople.TherewillbetheyearofcelebratewhichgoodforeventbusinessandCMO.Moreover,politicalenvironmentisslightlydecline.
Fortheinfrastructureinvestmentprojectinyear2019,theremightnotdirecteffecttocompanybusiness.But,governmentinvestmentwillbepositivetoThailandeconomicsituationandconsumptiongrowth rate.Marketingeventwill alsogetbustling.Theinvestmentplanwillbecontinuing inmanyyearsonward. ItcouldmakeThailand’seconomicandconsumptionexpand.
Fortheworld’seconomicandpolitical,thesituationisdeclineinoverview.Tradewaramongsuperpowercountrieshastrendtosettlement.Thiswillcausegoodeffecttoovertheworldmarketenvironment.Then,Thailand’seconomicisalsoreceivingthatgoodresulttoo.
3. Liquidity and sufficiency of working capital
4. Forward looking Factors
116 117Annual Report 2018 CMO Public Company Limited
13
TheCompanyhasrevisedthisAnnualInformationDisclosuredocumentwithcautionandcertifiesthattheinformationdisclosedherewithiscomplete,accurate,truthfulanddoesnotcauseanymisunderstandingnorlackanymaterialinformationthatneedstobedisclosed.Inaddition,theCompanyherebycertifiesthat:
(1) TheFinancialStatementsandotherfinancialdetailssummarizedinthisAnnualInformationDisclosuredocumentrepresentaccurateandcompleteinformationregardingthefinancialstatus,performanceandcashflowsoftheCompanyanditssubsidiaries.
(2) TheCompanymaintainsaneffectivedisclosuresystemtoensurethatmaterialinformationoftheCompanyanditssubsidiaries aredisclosedaccuratelyandcompletely,andtheCompanyisalsoresponsibleforensuringcompliancewithsuchsystem.
(3) TheCompanyalsomaintainsaneffectiveinternalcontrolsystem,andisresponsibleforensuringcompliancewithsuch system.TheCompanyreportedtheinformationabouttheinternalcontrolassessmenton28February2019totheCompany’s StatutoryAuditorandtheAuditCommittee.ThisassessmentincludedanyimportantdefaultandanychangeoftheinternalcontrolsystemincludinganyweaknesseswhichmayaffectthereportingoftheCompanyanditssubsidiaries’financialstatements.
Therefore, as evidence that thesedocuments constitute the entire set that theCompany has certified, theCompany has authorizedMr.SermkhunKunawongtoinitialallpages.IfanypageiswithoutMr.SermkhunKunawong’sinitials,theCompanydoesnotcertifythattheinformationgivenisthetruecopy.
Name Position Signature
Mr. Sermkhun Kunawong Chief Executive Officer
CERTIFICATION OF THE ACCURACY OF INFORMATION
Chang - Major Movie on the BeachbyCMO
14FINANCIAL STATEMENTS
Got7 2018 World Tour ‘Eyes on You’ in BangkokVisualEffect,Lighting,AudioSystem&SpecialEffectOperatedbyPM Center
Independent Auditor’s ReportsTotheShareholdersandtheBoardofDirectorsofCMOPublicCompanyLimited
Qualified OpinionI have audited the consolidated and separate financial statementsofCMOPublicCompanyLimitedanditssubsidiaries, and ofCMOPublicCompany Limited, respectively,whichcomprisetheconsolidatedandseparatestatementsoffinancial positionasatDecember31,2018,theconsolidatedandseparate statementsofprofitorlossandothercomprehensiveincome,statementsofchangesinshareholders’equityandstatementsofcashflowsfortheyearthenended,andnotestothefinancial statements, including a summary of significant accountingpolicies.
Inmyopinion,exceptsfortheeffectsofthematterdescribedintheBasisforQualifiedOpiniontotheConsolidatedFinancial Statementssectionformyreport,theaccompanyingconsolidated andseparate financial statements referred to abovepresentfairly, inallmaterial respects, theconsolidatedandseparatefinancialpositionoftheCMOPublicCompanyLimitedanditssubsidiaries, andofCMOPublic Limited, respectively, as atDecember31,2018,andtheirfinancialperformanceandcashflowsfortheyearthenended,inaccordancewithThaiFinancialReportingStandards(TFRSs).
Basis for Qualified Opinion on the Consolidated Financial StatementsAccordingtoNotetotheFinancialStatementNo.10,investmentinjointventureintheconsolidatedfinancialstatementsoftheCompanyrepresentinvestmentinCMOShowCorpCo.,Ltd.byusingequitymethodasatDecember31,2018,withoutstandingamountofBaht0.00millionasaresultofaccumulativelosssharinginjointventure,equalingtotheinvestmentinjointventureofBaht55millionplustherecordedshareoflossinexceedingthecostofinvestmentshownasthedeductiononlong-termloanstorelatedpartiesintheamounttoBaht20.83millionasdescribedinNotetotheFinancialStatementNo.5.Inaddition,the consolidatedstatementofprofitorlossandothercomprehensiveincomefortheyear2018recordeditsshareoflossfrominvestment injointventuresofBaht30.75million.TheJointventure’sfinancialstatementsusedforthepreparationtheconsolidatedfinancialstatementsundertheequitymethodwerepreparedbythecompany’saccountingstaffs.Iwasappointedastheauditorofthejointventurecompany.However,Ihavenotbeenallowedtoaccesstheoperatingareaofthejointventurefromanothergroupofpartners.According,Iwasunabletocompletetheauditofthejointventure’sfinancialstatements.Therefore,Iwasunabletodeterminewhethertherewereanyadjustmentsnecessaryforthesaidamount.
Ihaveperformedtheauditaccordingtotheaccountingstandards.Myresponsibilityisdescribedinparagraphsoftheauditor’sresponsibilityforauditingfinancialstatementsinmyreport.IamindependentfromthegroupofcompaniesinaccordancewiththecodeofconductoftheaccountingprofessionalasdeterminedbytheFederationofAccountingProfessionsinrelationtotheauditoffinancialstatements.AndIhavefollowedotherethicalresponsibilitiesinaccordancewiththeserequirementsIbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoserveasabasisformyconditionalopinion.
Emphasis of MattersWithoutqualifyingmyopinionontheabovefinancialstatements,IdrawyourattentiontoNotestothefinancialstatementsasfollows:
a. AccordingtoNotetoFinancialStatementNo.5,asatDecember31,2018,theconsolidatedandseparatestatementoffinancialpositionshowedtradeaccountreceivablesbeforeallowancefordoubtfulaccountsofajointventureamountingtoBaht30.66millionandBaht8.03million,respectively,andlong-termloanstorelatedpartiesbeforeallowancefordoubtfulaccountsintheamountofBaht61.56million.
Duringtheyears2018and2019,theGrouphasfiledStatementofClaimtotheCivilCourt,andonJanuary7,2019,asubsidiarycompanyreportedachequecasetothepolice,inordertoenforcethejointventuretosettlethepaymentofthetradereceivablestotheGroup.
OnFebruary28,2019,theCompanyfiledaStatementofClaimfordamageinfordamagesinrelationtolong-termloanstorelatedpartiesandinvestmentinjointventurewiththegroupofshareholderswhojointlyinvestedwiththeCompanyfortort;inducingtheCompanytoinvestandtogiveloanstothejointventurecompanyinwhichtherepresentationsmadebeforethe investmentarenotasclaimedandtheoperation isnot incompliancewiththe jointventureagreement.ThemanagementandlawyersoftheCompanyareawareoftheforegoingfactsandareintheopinionthattheCompanyhasachancetowinthecase.Furthermore,currently,thecompanieswhichtheCompanyshalltakeactionwithhavesufficientassetstojointlypayforalldamagestotheCompany.ThemanagementbelievethattheultimateoutcomeofthecasewillnotcausematerialdamagestotheGroupinexceedtheprovisiontheGrouphavealreadyprovidedforasofDecember31,2018.
b. AccordingtoNotetoFinancialStatementNo.28,onAugust2,2018,thejointventurewassuedfordamagesunderBlackCourtCaseNo.1453P/2017.TheCourtofFirst Instanceruled that theCompanymustcompensate theplaintiff in theamountofBaht53.97million.OnJanuary25,2019,theCompanyfiledanappealwiththeAppealsCourt,accordingtoRedCaseNo.3803P/2518.LegalcounselrepresentingboththeCompanyandthejointventure,aswellastheManagementofbothentities,believethecasewillnotcreatematerialdamagetothejointventure.
OnNovember29,2018,thecontractorsuedtheCompanyfordamages,intheamountofBaht53.97million,accordingtoBlackCourtNo.1453P/2017.LegalcounselandManagementoftheCompanybelievethattheoutcomeofthecasewillnotcauseanydamage.Therefore,theCompanyhasnotprovisionedforanyliabilitiesthatmayarisefromthecase.
Key Audit Matters Keyauditmattersarethosemattersthat,inmyprofessionaljudgment,wereofmostsignificanceinmyauditoftheconsolidatedandseparatefinancialstatementsofthecurrentyear.Thesematterswereaddressedinthecontextofmyauditoftheconsolidated andseparatefinancialstatementsasawhole,andinformingmyopinionthereon,andIdonotprovideaseparateopiniononthesematters.
Loan, and the compliance with the loan covenants
RisksDuringtheyears2013to2018,theGroupinvestedintheconstructionoftwobuildingsandhadcontinuinginvestmentsinequipment. AsatDecember31,2018theGrouphadoutstandingbankoverdraftsandshort-termloansfromfinancialinstitutions,aswellaslong-termloansfromfinancialinstitutionstotalingBaht329.49million.SuchinvestmentsrequiretheGrouptohaveaproperfinancialplaninordertobeabletocomplywiththevariousconditionsoftheloanagreements.
Auditor’s ResponseIhaveverifiedthefutureestimatedcashflowsoftheGrouppreparedbyManagementbyconsideringtheappropriatenessofthesignificantassumptionsforestimates,suchastheappropriatenessoftheestimatedrevenuesandcostsofserviceascomparedwiththehistoryrevenuesandcostsofservice,theanalysisofthegrowthrateoftherevenuesandcostsofservice,testingtheestimatedrevenuewiththesignedcontract,andanalysisofthesensitivityoftheestimates.ThenIconsideredtheGroup’sabilitytocomplywiththeconditionsoftheloanagreements.
Other InformationManagementisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludeinAnnualReport,butdoesnotincludetheconsolidatedandseparatefinancialstatementsandmyauditor’sreportthereon.TheAnnualReportfortheyearisexpectedtobemadeavailabletomeafterthedateofthisauditor’sreport.
MyopinionontheconsolidatedandseparatefinancialstatementsdoesnotcovertheotherinformationandIdonotexpressanyformofassuranceconclusionthereon.
Inconnectionwithmyauditof thefinancial statements,my responsibility is to read theother informationand, indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththeconsolidatedandseparatefinancialstatementsormyknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.
WhenIreadtheAnnualReport,ifIconcludethatthereisamaterialmisstatementtherein,Iamrequiredtocommunicatethemattertothosechargedwithgovernanceforcorrectionofthemisstatement.
122 123Annual Report 2018 CMO Public Company Limited
Responsibilities of Management and Those Charged with Governance for the Financial StatementsManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithTFRSs,andforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
Inpreparingthefinancialstatements,managementisresponsibleforassessingtheGroup’sabilitytocontinueasagoingconcern, disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheGrouportoceaseoperations,orhasnorealisticalternativebuttodoso.
ThosechargedwithgovernanceareresponsibleforoverseeingtheGroup’sfinancialreportingprocess.
Auditor’s Responsibilities for the Audit of the Financial Statements Myobjectivesaretoobtainreasonableassuranceaboutwhethertheconsolidatedandseparatefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesmyopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithTSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.
AspartofanauditinaccordancewithTSAs,Iexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Ialso: - Identifyandassesstherisksofmaterialmisstatementoftheconsolidatedandseparatefinancialstatements,whether
duetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisformyopinion.Theriskofnotdetectingamaterialmisstatementresulting fromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
- Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriate inthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sinternalcontrol.
- Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelat-eddisclosuresmadebymanagement.
- Concludeontheappropriatenessofmanagement’suseof thegoingconcernbasisofaccountingand,basedon theaudit evidenceobtained,whetheramaterial uncertaintyexists related toeventsor conditions thatmaycast significantdoubtontheGroup’sabilitytocontinueasagoingconcern.IfIconcludethatamaterialuncertaintyexists,Iamrequiredtodrawattentioninmyauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifymyopinion.Myconclusionsarebasedontheauditevidenceobtaineduptothedateofmyauditor’sreport.However,futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.
- Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhethertheconsolidatedandseparatefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
- ObtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithintheGrouptoexpressanopinionontheconsolidatedfinancialstatements.Iamresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Iremainsolelyresponsibleformyauditopinion.
Icommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatIidentifyduringmyaudit.
IalsoprovidethosechargedwithgovernancewithastatementthatIhavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonmyindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,Ideterminethosemattersthatwereofmostsignificanceintheauditoftheconsolidatedandseparatefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Idescribethesemattersinmyauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremely rarecircumstances, Idetermine thatamatter shouldnotbecommunicated inmy reportbecause theadverse consequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
(Yuttapong Chuamuangpan)CertifiedPublicAccountantRegistrationNumber9445
ANSAuditCo.,Ltd.Bangkok,February28,2019
124 125Annual Report 2018 CMO Public Company Limited
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF FINANCIAL POSITION ASATDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
Note 2018 2017 2018 2017
ASSETS
Current assets
Cashandcashequivalents 6 46,068,346.01 17,900,682.41 18,955,625.10 1,949,232.05
Tradeandothercurrentreceivables-net 5,7 341,947,818.79 367,596,953.61 173,555,625.49 167,470,380.55
Currentportionoffinanceleasereceivables 5,8 - - 4,980,873.03 4,582,048.11
Accrueddividendincome 5 - - 22,103,332.85 25,241,803.17
Short-termloanstorelatedparties 5 - - 94,200,000.00 103,100,000.00
Inventories-net 9 7,179,608.61 21,165,502.31 5,007,210.31 10,215,878.41
Total current assets 395,195,773.41 406,663,138.33 318,802,666.78 312,559,342.29
Non-current assets
Restricteddepositsatbanks 16,19 12,319,289.77 8,249,161.19 4,974,678.86 966,521.58
Financeleasereceivables-net 5,8 - - 9,436,310.31 14,417,183.34
Long-termloanstorelatedparties 5 38,948,980.81 33,798,701.70 59,775,272.91 33,798,701.70
Investmentsinjointventures-net 10 - 12,904,326.23 - 48,999,800.00
Investmentsinsubsidiaries-net 11 - - 169,449,400.00 169,449,400.00
Property,plantandequipment-net 12,16,19 608,082,122.00 613,438,421.60 68,407,089.64 78,398,342.74
Intangibleassets-net 13 4,801,042.19 5,867,803.40 2,782,000.00 1,820,000.00
Goodwill 4,635,859.29 4,635,859.29 - -
Deferredtaxassets-net 14 4,057,780.41 6,972,007.75 2,657,906.38 5,713,304.52
Othernon-currentassets 15 88,881,605.75 87,806,198.24 71,313,578.91 67,329,149.09
Total non-current assets 761,726,680.22 773,672,479.40 388,796,237.01 420,892,402.97
Total assets 1,156,922,453.63 1,180,335,617.73 707,598,903.79 733,451,745.26
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF FINANCIAL POSITION ASATDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
Note 2018 2017 2018 2017
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Bankoverdraftsandshort-termloansfromfinancial
institutions 16 260,234,762.22 296,510,976.38 185,707,627.94 191,710,575.40
Tradeandothercurrentpayables 5,17 180,941,972.10 202,866,042.66 102,133,764.23 105,007,103.20
Currentportionofliabilities
underfinancialleaseagreements 18 25,624,590.62 14,873,984.91 928,194.44 294,184.07
Currentportionoflong-termloans
fromfinancialinstitutions 19 39,424,032.59 35,497,270.20 20,884,199.59 14,260,626.20
Short-termloanfromrelatedparties 5 - - - 3,000,000.00
Dividendpayables 12,913,300.07 11,470,985.75 - -
Total current liabilities 519,138,657.60 561,219,259.90 309,653,786.20 314,272,488.87
Non-current liabilites
Intercompanyprofitintheoutstanding
equipmentofjointventures 10 21,603,039.79 24,582,399.55 - -
Liabilitiesunderfinancialleaseagreements-net 18 32,802,697.64 18,619,207.03 1,440,044.35 730,495.31
Long-termloansfromfinancialinstitutions-net 19 29,834,496.49 55,087,598.24 15,724,496.49 22,437,765.24
Deferredtaxliabilities-net 14 23,341,126.87 26,255,707.99 - -
Non-currentprovisionforemployeebenefits 20 30,139,531.00 27,071,057.00 8,491,333.00 7,851,248.00
Total non-current liabilities 137,720,891.79 151,615,969.81 25,655,873.84 31,019,508.55
Total liabilities 656,859,549.39 712,835,229.71 335,309,660.04 345,291,997.42
126 127Annual Report 2018 CMO Public Company Limited
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF FINANCIAL POSITION ASATDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
Note 2018 2017 2018 2017
Shareholders’ equity
Share capital
Authorizedsharecapital
Commonshares255,462,733sharesatBaht1each 255,462,733.00 255,462,733.00 255,462,733.00 255,462,733.00
Issuedandfullypaid-upsharecapital
Commonshares255,462,733sharesatBaht1earch 255,462,733.00 255,462,733.00 255,462,733.00 255,462,733.00
Premiumsonsharecapital 93,569,476.36 93,569,476.36 93,569,476.36 93,569,476.36
Discountoninvestments 4,907,142.73 4,907,142.73 - -
Changesintheproportionheldbynon-controllinginterests 303,380.88 303,380.88 - -
Retainedearnings(deficit)
Appropriated
Appropriatedtolegalreserve 21 13,988,325.35 13,504,539.40 13,988,325.35 13,504,539.40
Unappropriated (15,454,992.25) (42,356,048.91) 9,268,709.04 25,622,999.08
Othercomponentsofshareholders’equity 10 129,490,042.79 129,490,042.79 - -
Totalshareholders’equityofthecompany 482,266,108.86 454,881,266.25 372,289,243.75 388,159,747.84
Non-controllinginterests 11 17,796,795.38 12,619,121.77 - -
Total shareholders’ equity 500,062,904.24 467,500,388.02 372,289,243.75 388,159,747.84
Total liabilities and shareholders’ equity 1,156,922,453.63 1,180,335,617.73 707,598,903.79 733,451,745.26
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFORTHEYEARENDEDDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
Note 2018 2017 2018 2017
5,24
Revenue from services 1,449,095,438.62 1,362,236,516.89 626,784,452.65 575,560,573.00
Costofservices (1,100,353,463.54) (1,043,273,172.47) (477,335,955.72) (443,396,825.20)
Gross profit 348,741,975.08 318,963,344.42 149,448,496.93 132,163,747.80
Otherincome 9,149,952.57 14,205,224.68 20,488,968.44 24,846,935.64
Sellingexpenses (12,752,340.01) (6,511,240.50) (2,029,572.44) (2,021,586.48)
Administrativeexpenses (198,326,966.17) (198,702,557.03) (150,465,164.22) (108,168,989.87)
Financecosts (24,278,885.95) (25,396,767.01) (13,033,937.80) (14,073,382.70)
Dividendincome 11 - - 19,815,808.32 26,640,466.53
Shareoflossfrominvestmentsinjointventures 10 (30,751,258.57) (36,259,595.76) - -
Profit before income tax 91,782,476.95 66,298,408.80 24,224,599.23 59,387,190.92
Taxexpenses 14 (26,824,547.48) (22,724,648.54) (14,548,880.21) (6,690,716.31)
Profit for the year 64,957,929.47 43,573,760.26 9,675,719.02 52,696,474.61
Other comprehensive income :
Items that may be reclassified subsequently to profit or loss
Gain on changes of proportion
ininvestmentinjointventures 10 - 16,108,349.39 - -
Total comprehensive income for the year 64,957,929.47 59,682,109.65 9,675,719.02 52,696,474.61
Profit attributable to
EquityholdersoftheCompany 52,931,065.91 36,194,337.39 9,675,719.02 52,696,474.61
Non-controllinginterests 12,026,863.56 7,379,422.87 - -
64,957,929.47 43,573,760.26 9,675,719.02 52,696,474.61
Total comprehensive income attributable to
EquityholdersoftheCompany 52,931,065.91 52,302,686.78 9,675,719.02 52,696,474.61
Non-controllinginterests 12,026,863.56 7,379,422.87 - -
64,957,929.47 59,682,109.65 9,675,719.02 52,696,474.61
Basic earnings per share 0.21 0.14 0.04 0.21
Weightedaveragenumberofordinaryshares(shares) 255,462,733 255,462,733 255,462,733 255,462,733
128 129Annual Report 2018 CMO Public Company Limited
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFORTHEYEARENDEDDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements
EquityattributabletoequityholdersoftheCompany
Othercomponentsofshareholders’equity
Retainedearnings(deficit) Othercomprehensiveincome
Changes in the Gain on changes of Total other Total
Issuedandpaid-up Premiumson Discountson proportionheldby Appropriated Surplusonland proportionininvestment componentsof Equityholders Non-controlling
Notes sharecapital sharecapital investments non-controlling interests tolegalreserve Unappropriated revaluation injointventures shareholders’equity oftheCompany interests Total
Balance as at January 1, 2017 255,462,733.00 93,569,476.36 4,907,142.73 303,380.88 10,869,715.71 (41,428,159.28) 113,381,693.40 - 113,381,693.40 437,065,982.80 17,742,805.11 454,808,787.91
Changesinshareholders’equityfortheyear:
Appropriatedtolegalreserve 21 - - - - 2,634,823.69 (2,634,823.69) - - - - - -
Dividends 22 - - - - - (34,487,403.33) - - - (34,487,403.33) (10,411,068.11) (44,898,471.44)
Increaseinnon-controllinginterests-net 11 - - - - - - - - - - 300.00 300.00
Changesintheproportionheldby
non-controllinginterests 11 - - - - - - - - - - (2,092,338.10) (2,092,338.10)
Totalcomprehensiveincomefortheyear - - - - - 36,194,337.39 - 16,108,349.39 16,108,349.39 52,302,686.78 7,379,422.87 59,682,109.65
Balance as at December 31, 2017 255,462,733.00 93,569,476.36 4,907,142.73 303,380.88 13,504,539.40 (42,356,048.91) 113,381,693.40 16,108,349.39 129,490,042.79 454,881,266.25 12,619,121.77 467,500,388.02
Changesinshareholders’equityfortheyear:
Appropriatedtolegalreserve 21 - - - - 483,785.95 (483,785.95) - - - - - -
Dividends 22 - - - - - (25,546,223.30) - - - (25,546,223.30) (6,849,189.95) (32,395,413.25)
Totalcomprehensiveincome(loss)fortheyear - - - - - 52,931,065.91 - - - 52,931,065.91 12,026,863.56 64,957,929.47
Balance as at December 31, 2018 255,462,733.00 93,569,476.36 4,907,142.73 303,380.88 13,988,325.35 (15,454,992.25) 113,381,693.40 16,108,349.39 129,490,042.79 482,266,108.86 17,796,795.38 500,062,904.24
130 131Annual Report 2018 CMO Public Company Limited
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFORTHEYEARENDEDDECEMBER31,2018
Unit:Baht
Separatefinancialstatements
Retained earnings
Issuedandpaid-up Premiumson Appropriated
Notes sharecapital sharecapital tolegalreserve Unappropriated Total
Balance as at January 1, 2017 255,462,733.00 93,569,476.36 10,869,715.71 10,048,751.48 369,950,676.55
Changesinshareholders’equity
fortheyear:
Appropriatedtolegalreserve 21 - - 2,634,823.69 (2,634,823.69) -
Dividends 22 - - - (34,487,403.32) (34,487,403.32)
Totalcomprehensiveincome
fortheyear - - - 52,696,474.61 52,696,474.61
Balance as at December 31, 2017 255,462,733.00 93,569,476.36 13,504,539.40 25,622,999.08 388,159,747.84
Changesinshareholders’equity
fortheyear:
Appropriatedtolegalreserve 21 - - 483,785.95 (483,785.95) -
Dividends 22 - - - (25,546,223.11) (25,546,223.11)
Totalcomprehensiveincome
fortheyear - - - 9,675,719.02 9,675,719.02
Balance as at December 31, 2018 255,462,733.00 93,569,476.36 13,988,325.35 9,268,709.04 372,289,243.75
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF CASH FLOWSFORTHEYEARENDEDDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Cash Flows from Operating Activities:
Profitbeforeincometax 91,782,476.95 66,298,408.80 24,224,599.23 59,387,190.92
Adjustmentstoreconcileprofitbeforeincometaxtonetcashflow
fromoperatingactivities:
Depreciationandamortization 105,200,968.39 107,386,928.62 15,934,163.84 17,777,112.02
Impairmentlossonassets - 97,209.82 - -
Allowancefordoubtfuldebt 2,763,651.78 6,181,406.69 503,437.69 3,020,032.69
(Profit)lossfromdisposalofinvestmentinsubsidiary - (1,282.39) - 603,725.54
Impairementlossoninvestmentsinjointventures - - 48,999,800.00 6,000,000.00
Gainonsalesoffixedassetsandintangibleassets (2,387,517.04) (5,446,774.59) (450,756.49) (623,992.37)
Supplies-lightingandothersuppliesweretransferredtoexpenses 16,538,021.61 - - -
Writtenoffwithholdingtax 268,731.87 4,310,860.30 - -
Non-currentprovisionforemployeebenefits 3,068,474.00 3,027,912.75 640,085.00 612,140.00
Dividendincome - - (19,815,808.32) (26,640,466.53)
Shareoflossfrominvestmentsinjointventures 30,751,258.57 36,259,595.76 - -
Unrealizegainfromsalesofinventoriestojointventure - 2,634,661.47 - -
Interestexpenses 24,278,885.95 25,396,767.01 13,033,937.80 14,073,382.70
Profitfromoperatingactivitiesbeforechanges
inoperatingassetsandliabilities 272,264,952.08 246,145,694.24 83,069,458.75 74,209,124.97
Operatingassets(increase)decrease
Tradeandothercurrentreceivables 22,885,483.04 (100,097,014.17) (6,588,682.63) 28,806,011.16
Workinprocess 13,985,893.70 12,296,033.48 5,208,668.10 4,426,706.71
Othernon-currentassets 40,888,592.46 34,882,136.71 13,603,160.27 16,107,389.68
Operatingliabilitiesdecrease
Tradeandotherpayables (22,509,467.56) (1,712,663.25) (3,409,081.25) (28,548,920.80)
Cashfromoperatingactivities 327,515,453.72 191,514,187.01 91,883,523.24 95,000,311.72
Employeebenefitobligationspaid - (354,260.00) - -
Interestpaid (24,278,885.95) (25,396,767.01) (13,046,677.53) (14,060,642.97)
Incometaxpaid (69,057,633.10) (49,897,902.45) (29,081,072.16) (14,255,779.77)
Net cash from operating activities 234,178,934.67 115,865,257.55 49,755,773.55 66,683,888.98
132 133Annual Report 2018 CMO Public Company Limited
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIES STATEMENTS OF CASH FLOWSFORTHEYEARENDEDDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Cash Flows from Investing Activities:
(Increase)decreaseinrestricteddepositsatbank (4,070,128.58) 5,139,286.37 (4,008,157.28) (7,059.74)
Cashreceivedfromshort-termloanstorelatedparties - - 36,400,000.00 24,200,000.00
Cashpaymentforshort-termloanstorelatedparties - - (27,500,000.00) (35,600,000.00)
Cashpaymentforlong-termloanstorelatedparties (25,976,571.21) (35,580,000.00) (25,976,571.21) (35,580,000.00)
Cashreceivedfromsalesinvestmentinsubsidiary - - - 1,396,174.46
Cashpaymentforinvestmentinsubsidiary - - - (9,999,700.00)
Dividendincomefrominvestments - - 22,954,278.64 13,219,906.67
Purchaseoffixedassets (68,351,312.72) (52,488,303.49) (4,237,616.18) (801,070.42)
Purchaseofintangibleassets (1,008,000.00) (1,820,000.00) (962,000.00) (1,820,000.00)
Cashreceivedfromsalesoffixedassetsandintangibleassets 3,435,624.78 24,195,133.93 1,498,617.03 12,778,791.76
Cashreceivedfromfinanceleasereceivables - - 4,582,048.11 -
Net cash from (used in) investing activities (95,970,387.73) (60,553,883.19) 2,750,599.11 (32,212,957.27)
CMOPUBLICCOMPANYLIMITEDANDITSSUBSIDIARIESSTATEMENTS OF CASH FLOWSFORTHEYEARENDEDDECEMBER31,2018
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Cash Flows from Financing Activities:
Increase(decrease)inbankoverdraftandshort-termloans
fromfinancialinstitutions-net (36,276,214.16) 59,035,166.15 (6,002,947.46) 16,645,067.89
Cashpaymentsforliabilitiesunderfinancialleaseagreements (21,485,231.69) (9,762,725.03) (861,113.49) (263,492.44)
Cashreceivedfromshort-termloansfromrelatedparties - 13,000,000.00 13,000,000.00 20,000,000.00
Cashpaymenttoshort-termloanfromrelatedparties - (13,000,000.00) (16,000,000.00) (17,000,000.00)
Cashreceivedfromlong-termloanfromfinancialinstitutions 20,000,000.00 - 20,000,000.00 -
Cashpaymentoflong-termloansfromfinancialinstituations (41,326,339.36) (58,115,781.12) (20,089,695.36) (20,701,842.74)
Dividendpaid (30,953,098.13) (45,167,550.65) (25,546,223.30) (34,487,403.32)
Changesintheproportionheldbynon-controllinginterests - 300.00 - -
Net cash used in financing activities (110,040,883.34) (54,010,590.65) (35,499,979.61) (35,807,670.61)
Net increase (decrease) in cash and cash equivalents 28,167,663.60 1,300,783.71 17,006,393.05 (1,336,738.90)
Decrease in cash from sales of investment in subsidiaries - (2,031,097.71) - -
Cash and cash equivalents, Beginning of year 17,900,682.41 18,630,996.41 1,949,232.05 3,285,970.95
Cash and cash equivalents, End of year 46,068,346.01 17,900,682.41 18,955,625.10 1,949,232.05
Supplemental Disclosures of Cash Flows Information
Increaseinassetsfromfinancialleaseagreementsduringtheyear 46,419,328.01 1,549,766.35 2,204,672.90 450,000.00
Financeleasereceivablesarisingfromthesalesofassets
duringtheyear. - - - 18,999,231.45
Payabletopurchaseoffixedassetsincrease(decrease)
duringtheyear 585,397.00 (48,032.30) 548,482.00 (48,032.30)
134 135Annual Report 2018 CMO Public Company Limited
CMO PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2018
1. GENERAL INFORMATION
CMOPublicCompanyLimited(“theCompany”)wasincorporatedunderThailawonJune5,1991,andonDecember29,
2003wasconvertedfromajuristicpersonundertheCivilandCommercialCodeas“aCompanyLimited”toajuristicperson
underthePublicCompanyLimitedActB.E.2535.TheCompany’sprimarybusinessiseventmanagementforpublicevents,
exhibitionsandentertainmentactivities.TheCompany’sregisteredofficeis locatedat4/18-19SoiNuanchan56,Nuanchan,
BuengkumBangkok.
2. BASIS FOR PRESENTATION OF THE FINANCIAL STATEMENTS
ThefinancialstatementsarepreparedinaccordancewithThaiFinancialReportingStandards(“TFRS”)includingrelated
interpretations andguidelinespromulgatedby the FederationofAccountingProfessions (“FAP”) and applicable rules and
regulationsoftheSecuritiesandExchangeCommission.
ThefinancialstatementsarepresentedincompliancewithstipulationsoftheNotificationoftheDepartmentofBusiness
Development,datedOctober11,2016,issuedundertheAccountingActB.E.2543.
Thesefinancialstatementsarepreparedonthehistoricalcostbasis,exceptasdisclosedinrespectiveaccountingpolicies.
TheaccompanyingfinancialstatementshavebeenpreparedinThailanguageandareexpressedinThaiBaht.Suchfinancial
statementshavebeenpreparedfordomesticreportingpurposes.FortheconvenienceofthereadersnotconversantintheThai
language,anEnglishtranslationoftheThaiversionofthefinancialstatementsisprovided.
Thepreparation of the financial statements in conformitywith Thai Financial ReportingStandards (“TFRS”) requires
managementtomakejudgments,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsof
assets,liabilities,incomeandexpenses.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandvarious
otherfactorsthatarebelievedtobereasonableunderthecircumstances,theresultsofwhichformthebasisofmakingthe
judgmentsaboutcarryingamountsofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Subsequentactual
resultsmaydifferfromtheseestimates.
Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerec-
ognizedintheperiodinwhichtheestimateisrevised,iftherevisionaffectsonlythatperiod,orintheperiodoftherevisionand
futureperiods,iftherevisionaffectsbothcurrentandfutureperiods.
Basis of consolidated financial statement preparation
a) Theconsolidatedfinancialstatements includedthefinancialstatementsofCMOPublicCompanyLimitedand its
subsidiaries(thattogetherreferredtoasthe“Group”).
ThedetailsofthesubsidiariesasatDecember31,areasfollows:
%Equityinterestand
votingrightowned
bytheCompany
Subsidiaries Country Natureofbusiness 2018 2017
Thesubsidiaryheld
bytheCompany
PMCenterCo.,Ltd. Thailand Rentalequipmentforimage,lighting,
soundandeffects. 99.99 99.99
TheEyesCo.,Ltd. Thailand Productionofmulti-visualslides,videos,
multimediaandcomputergraphics. 99.95 99.95
ExpositionTechnologyCo.,Ltd. Thailand Electricalandlightingservices. 40.00 40.00
MomentumSCo.,Ltd. Thailand Eventmanagementforprivateevent,
weddingceremonies,birthdayparties
andother. 56.99 56.99
MuseCorporationCo.,Ltd. Thailand Concertorganizers,sound,
lightingandalltypeofmultimedia. 69.99 69.99
ImaginiaCo.,Ltd Thailand AmusementparkandThemepark. 100.00 100.00
b) Thefinancialstatementsofthesubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethat
controlcommencesuntilthedatethatcontrolceases.
c) ThefinancialstatementsofsubsidiariesarepreparedusingthesamesignificantaccountingpoliciesastheCompany.
d) Thebalancesbetween theCompany and its subsidiaries, and significant intercompany transactions havebeen
eliminatedintheconsolidatedfinancialstatements.
ThefinancialstatementsofExpositionTechnologyCo.,Ltd.,isincludedintheconsolidatedfinancialstatementsbecause
theCompanyhascontrolovertheirfinancialandoperatingpolicies,eventhoughtheCompany’sshareholdingineachislessthan
50percent,therefore,theyareregardedassubsidiarycompanies.
Non-controllinginterestsrepresenttheportionofprofitorlossandnetassetsofthesubsidiarythatarenotheldbythe
Companyandarepresentedseparatelyintheconsolidatedprofitorlossandwithinequityintheconsolidatedstatementsof
financialposition.
Theseparatefinancialstatements,whichpresentinvestmentinsubsidiariesandjointventuresunderthecostmethod,have
beenpreparedsolelyforthebenefitofthepublic.
136 137Annual Report 2018 CMO Public Company Limited
New financial reporting standards
(a) Financial reporting standards that became effective in the current year
During the year 2018, theCompany and its subsidiaries have adopted the revised financial reporting standards and
interpretations(revised2017)andnewaccountingtreatmentguidancewhichareeffectiveforfiscalyearsbeginningonor
afterJanuary1,2018.ThesefinancialreportingstandardswereaimedatalignmentwiththecorrespondingInternational
FinancialReportingStandardswithmostofthechangesandclarificationsdirectedtowardsdisclosuresinthenotestofinancial
statements.TheadoptionofthesefinancialreportingstandardsdoesnothaveanysignificantimpactontheCompanyand
itssubsidiaries’financialstatements.
(b) Financial reporting standard that will become effective for fiscal years beginning on or after January 1, 2019
Duringtheyear2018,theFederationofAccountingProfessionsissuedanumberofrevisedandnewfinancialreporting
standardsandinterpretations(revised2018)includingnewaccountingtreatmentguidance,whichareeffectiveforfiscalyears
beginningonorafterJanuary1,2019.Thesefinancialreportingstandardswereaimedatalignmentwiththecorresponding
InternationalFinancialReportingStandardswithmostofthechangesdirectedtowardsclarifyingaccountingtreatmentand
providingaccountingguidanceforusersofthestandards.
ThemanagementoftheCompanyanditssubsidiariesbelievethatmostoftherevisedfinancialreportingstandardswillnot
haveanysignificantimpactonthefinancialstatementswhentheyareinitiallyapplied.However,thenewstandardinvolves
changestokeyprinciples,assummarisedbelow.
TFRS 15 Revenue from Contracts with Customers
TFRS15supersedesthefollowingaccountingstandardstogetherwithrelatedInterpretations.
TAS11(revised2017) Constructioncontracts
TAS18(revised2017) Revenue
TSIC31(revised2017) Revenue-BarterTransactionsInvolvingAdvertisingServices
TFRIC13(revised2017) CustomerLoyaltyProgrammes
TFRIC15(revised2017) AgreementsfortheConstructionofRealEstate
TFRIC18(revised2017) TransfersofAssetsfromCustomers
Entitiesaretoapplythisstandardtoallcontractswithcustomersunlessthosecontractsfallwithinthescopeofother
standards. The standardestablishesa five-stepmodel to account for revenuearising fromcontractswith customers,
withrevenuebeingrecognizedatanamountthatreflectstheconsiderationtowhichanentityexpectstobeentitledin
exchangefortransferringgoodsorservicestoacustomer.Thestandardrequiresentitiestoexercisejudgement,takinginto
considerationalloftherelevantfactsandcircumstanceswhenapplyingeachstepofthemodel.
ThemanagementoftheCompanyanditssubsidiarieshasmadeanassessmentofthepotentialimpactofadopting
andinitiallyapplyingTFRS15ontheconsolidatedandseparatefinancialstatementsandtherewillbenomaterialimpact
ontheconsolidatedandseparatefinancialstatementsintheperiodofinitialapplication.
(c) Financial reporting standards related to the set of financial instruments that will become effective for fiscal years
beginning on or after January 1, 2020
Duringtheyear2018,theFederationofAccountingProfessionsissuedthesetofTFRSsrelatedtofinancialinstruments
consistsoffiveaccountingstandardsandinterpretations,asfollows:
Financialreportingstandards:
TFRS7 FinancialInstruments:Disclosures
TFRS9 FinancialInstruments
Accountingstandard:
TAS32 FinancialInstruments:Presentation
FinancialReportingStandardInterpretations:
TFRIC16 HedgesofaNetInvestmentinaForeignOperation
TFRIC19 ExtinguishingFinancialLiabilitieswithEquityInstruments
TheseTFRSsrelatedtofinancialinstrumentsmakestipulationsrelatingtotheclassificationoffinancialinstrumentsandtheir
measurementatfairvalueoramortisedcost(takingintoaccountthetypeofinstrument,thecharacteristicsofthecontractual
cashflowsandtheCompany’sbusinessmodel,calculationofimpairmentusingtheexpectedcreditlossmethod,andhedge
accounting.Theseincludestipulationsregardingthepresentationanddisclosureoffinancialinstruments.WhentheTFRSsrelated
tofinancialinstrumentsareeffective,someaccountingstandards,interpretationsandguidancewhicharecurrentlyeffectivewill
becancelled.
ThemanagementoftheCompanyanditssubsidiariesiscurrentlyevaluatingtheimpactofthesestandardstothefinancial
statementsintheyearwhentheyareadopted.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues and Expenses Recognitions
Revenuesandexpensesarerecognizedonanaccrualbasis.
Revenuesfromeventmanagementofpublicshows,exhibitionsandentertainmenteventsarerecognizedwhentheservices
arecompleted.Revenuesfromcompletedbutunbilled,servicewerepresentedinunbilledreceivableswhicharealsoincludedin
tradeaccountsreceivable.
Revenuesfromdecorationconstructionarerecognizedbasedonthepercentageofcompletioncalculatedaccordingtothe
proportionofactualcostincurredcomparedtotheestimatedtotalcost.Un-invoicedincomeispresentedasunbilledreceivables
andisincludedaspartofaccountsreceivablewhiletherespectivecostispresentedinstatementofprofitorloss.
Revenuesfromrentalofimage,lighting,andsoundeffectequipmentarerecognizedwhentheservicesarecompleted.
Revenuesfromrentalarerecognizedasanincomeonstraight-linebasisovertherentalperiod.
Revenues from theproductionof slides,multi-visuals, videos,multimediaandcomputergraphicsare recognizedwhen the
productionsaredeliveredtothecustomers.
Costofuncompletedjobsorundeliveredjobsarerecordedasworkinprocess.
Costofserviceoffinishedworkisrecordedaccordingtotheinvoicedvalueafterdiscountandrebate.
138 139Annual Report 2018 CMO Public Company Limited
Cash and Cash Equivalents
Cashandcashequivalentspresentedinthestatementsofcashflowsandcompriseofcashinhand,depositsatfinancial
institutionswithamaturityperiodnotover3monthsexceptforcashatbanksheldascollateral.
Allowance for Doubtful Accounts
TheCompanyandsubsidiariesprovideanallowancefordoubtfulaccountsequaltotheestimateduncollectibleamount
whichisbasedoncollectionexperienceandanalysisofthecurrentstatusofindividualreceivables.
Finance lease receivables
Financeleasereceivablesarestatedatoutstandingbalancesnetofdeferredinterestincomeandunearnedrelatedservice
incomeandallowancefordoubtfulaccounts(ifany).
Work in Process
Costofwork,whichisnotyetrecognizedasrevenues,isrecordedinworkinprocess,isstatedattheloweroftheinvoiced
valueafterdiscountingornetrealizablevalue.
Investments in Joint Ventures
Investmentsinjointventurearepresentedinconsolidatedfinancialstatementsbyusingtheequitymethod,andpresented
intheseparatefinancialstatementsbyusingthecostmethod,andadjustedimpairment,ifany.
Investments in Subsidiaries
Investments insubsidiariesarepresented intheseparatefinancialstatementsbyusingthecostmethod,andadjusted
impairment,ifany.
TheCompanypresentedtheoutstandingbalanceofthenegativegoodwillthathadarisenfromtheacquisitionofthein-
vestmentinasubsidiarycompanyas“DiscountonInvestments”undertheshareholders’equity. Thiswillberecognizedinthe
statementofprofitorlosswhentheinvestmentisdisposed.
Property, Plant and Equipment and Depreciation
Landispresentedattheappraisedvalueappraisedbyanindependentappraiser,datedMarch24,2015andSeptember8,
2016byusingthemarketvalue.
Buildingsandequipmentarestatedatcostlessaccumulateddepreciationandimpairmentlossfromassets(ifany).
Depreciationiscomputedbythestraight-linemethodbasedontheestimatedusefullivesoftheassetsasfollows:-
Usefullife(years)
Buildings 20-30
Buildingimprovements 5
Operatingequipment 3and5
Officeequipment 3and5
Furnitureandfixtures 5
Vehicles 5
SuppliesarestatedatcostbyusingFirst-In,First-OutMethodandwillbeexpendedwhenused.
Depreciationmethod,usefullifeandtheresidualvaluewillbereviewedattheendoftheaccountingperiodandisadjusted
ifappropriate.Duringtheyear2016,theGroupdepreciationthenewlybythesum-of-the-yearsmethodover5yearspurchased
innovationequipmentduringtheyear.
Intangible assets
Theintangibleassetsarecarriedatcostlessanyaccumulatedamortizationandanyaccumulatedimpairmentlosses(ifany).
Intangibleassetswithfinitelivesareamortizedonasystematicbasisovertheeconomicusefullifeandtestedforimpairment
wheneverthereisanindicationthattheintangibleassetmaybeimpaired.Theamortizationperiodandtheamortizationmethod
ofsuchintangibleassetsarereviewedatleastateachfinancialyearend.Theamortizationexpenseischargedtoprofitorloss.
TheGroup’sintangibleassetswithfiniteusefullivesconsistoftextlicenses,musiclicenses,imagelicensesandsoftwares,which
haveanestimatedusefullifeof3-5years.
Finance lease
Financeleasewhichtransfersubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Finance
leasesarecapitalizedatthelowerofthefairvalueoftheleasedassetsandthepresentvalueoftheminimumleasepayments.
Theoutstandingrentalobligations,netoffinancecharges,areincludedinotherlong-termpayables,whiletheinterestelementis
chargedtotheprofitorlossovertheleaseperiod.Theproperty,plantorequipmentacquiredunderfinanceleasesisdepreciated
overtheusefullifeoftheasset.
Operating lease
Leaseofassetswhereasignificantportionoftherisksandrewardsofownershipareretainedbythelesserareclassified
asoperatingleases.Paymentsmadeunderoperatingleasesarerecognizedasexpensesintheprofitorlossovertheperiodof
thelease.
Employee benefits
Short-term benefits
TheGroupsalaries,wages,bonusandsocialsecuritycontributionasexpensesonanaccrualbasis.
Post-employment benefits – defined contribution plan
Definedcontributionplans
TheGroupandtheiremployeeshavejointlyestablishedaprovidentfund.Thefundismonthlycontributedbyemployeesand
bytheGroup.Thefund’sassetsareheldinaseparatetrustfundandthecontributionsoftheGrouparerecognizedasexpenses
whenincurred.
Definedbenefitplansandotherlong-termemployeebenefits
Theemployeebenefitobligationforseverancepaymentunderlaborlawisrecognizedasachargetoresultsofoperations
overtheemployee’sserviceperiod.Itiscalculatedbyestimatingtheamountoffuturebenefitearnedbyemployeesinreturnfor
serviceprovidedtotheGroupinthecurrentandfutureperiods,withsuchbenefitbeingdiscountedtodeterminethepresentvalue.
Thereferencepointforsettingthediscountrateistheyieldrateofgovernmentbondsasatthereportingdate.Thecalculationis
performedbyactuarialtechniqueusingtheProjectedUnitCreditMethod.
Actuarialgainsandlossesarisingfrompost-employmentbenefitsarerecognizedimmediatelyintheothercomprehensiveincome
andactuarialgainsandlossesarisingfromotherlong-termemployeebenefitsarerecognizedimmediatelyintheprofitorloss.
Provisions
ProvisionsarerecognizedwhentheGrouphasapresentobligationasaresultofapastevent,itisprobablethatanoutflow
ofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,andareliableestimatecanbemadeofthe
amountoftheobligation.
140 141Annual Report 2018 CMO Public Company Limited
Income tax
Incometaxexpensesrepresentthesumofcorporateincometaxcurrentlypayableanddeferredtax.
Current tax
TheGrouprecordcurrentincometaxattheamountexpectedtobepaidtothetaxationauthorities,basedontaxableprofits
determinedinaccordancewithtaxlegislation.
Deferred tax
TheGrouprecognizesdeferredincometaxontemporarydifferencesbetweenthetaxbasesofassetsandliabilitiesand
theircarryingamountsattheendofeachreportingperiod,usingthetaxratesenactedattheendofthereportingperiod.
TheGrouprecognizesdeferredtaxliabilitiesforalltaxabletemporarydifferenceswhileitrecognizedeferredtaxassetsfor
alldeductibletemporarydifferencesandtaxlossescarriedforwardtotheextentthatitisprobablethatfuturetaxableprofitwill
beavailableagainstwhichsuchdeductibletemporarydifferencesandtaxlossescarriedforwardcanbeutilized.
Ateachreportingdate,theGroupreviewandreducethecarryingamountofdeferredtaxassetstotheextentthatitisno
longerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilized.
TheGroup recordsdeferred taxdirectly toshareholders’equity if the tax relates to items thatare recordeddirectly to
shareholders’equity.
Transactions in Foreign Currencies
ForeigncurrencytransactionsaretranslatedintoBahtattheexchangeratesprevailingonthetransactiondates.Monetary
assetsandliabilitiesdenominatedinforeigncurrenciesoutstandingatthestatementfinancialpositiondatearetranslatedinto
Bahtattheexchangeratesprevailingonthosedates.Gainorlossesonexchangeratesarerecognizedasincomeorexpenses
fortheyear.
Fair value measurement
Fairvalueisthepricethatwouldbereceivedtosellanassetorthatpaidtotransferaliabilityinanorderlytransaction
betweenbuyerandseller (marketparticipants)atthemeasurementdate.TheCompanyappliesaquotedmarketprice inan
activemarkettomeasuretheirassetsandliabilitiesthatarerequiredtobemeasuredatfairvaluebyrelevantfinancialreporting
standards.Exceptwheretherenoactivemarketforanidenticalassetorliabilityorwhenaquotedmarketpriceisnotavailable,
theCompanymeasuresfairvalueusingvaluationtechniquesappropriateinthecircumstancesandmaximizestheuseofrelevant
observableinputsrelatedtoassetsandliabilitiesthatarerequiredtobemeasuredatfairvalue.
Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedinthefinancialstatementsarecategorizedwithinthefair
valuehierarchyintothreelevelsbasedoncategoriesofinputtobeusedinfairvaluemeasurementasfollows:
Level1 Useofquotedmarketpricesinanobservableactivemarketforsuchassetsorliabilities.
Level2 Useofotherobservableinputsforsuchassetsorliabilities,whetherdirectlyorindirectly.
Level3 Useofunobservableinputssuchasestimatesoffuturecashflows.
Attheendofeachreportingperiod,theCompanyandsubsidiariesdetermineswhethertransfersthathaveoccurredbetween
thelevelswithinthefairvaluehierarchyforassetsandliabilitiesheldattheendofthereportingperiodaremeasuredatfairvalue
onarecurringbasis.
Basic earnings per share
Basicearningspersharearecalculatedbydividingprofitfortheyearattributabletoshareholdersbytheweightedaverage
numberofordinarysharesduringtheyear.
Financial Instruments
TheGrouphasnopolicytospeculateinorengageinthetradingofanyfinancialderivativeinstruments.
4. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
Thepreparationoffinancialstatementsinconformitywithgenerallyacceptedaccountingprinciplesrequiresmanagement
tomakesubjectivejudgmentsandestimatesregardingmattersthatareinherentlyuncertain.Thesejudgmentsandestimates
affectreportedamountsanddisclosuresandactualresultscoulddiffer.Significantjudgmentsandestimatesareasfollows:
Allowance for doubtful accounts
Indetermininganallowancefordoubtfulaccounts,themanagementneedstomakejudgmentsandestimatesbasedupon,
amongotherthings,pastcollectionhistory,agingprofileofoutstandingdebtsandtheprevailingeconomicconditions.
Allowance for diminution in value of inventory
Thedeterminationofallowancesfordiminutioninthevalueofinventoryrequiresmanagementtomakejudgmentsandes-
timates.Theallowancefordeclineinnetrealizablevalueisestimatedbasedonthesellingpriceexpectedintheordinarycourse
ofbusiness;andprovisionforobsolete,slow-movinganddeterioratedinventories,thatisestimatedbasedontheapproximate
usefullifeofeachtypeofinventory.
Leases
Indeterminingwhetheraleaseistobeclassifiedasanoperatingleaseorfinancelease,themanagementisrequiredto
usejudgmentregardingwhethersignificantriskandrewardsofownershipoftheleasedassethasbeentransferred,takinginto
considerationtermsandconditionsofthearrangement.
Property, plant and equipment / Depreciation
Indeterminingdepreciationofplantandequipment,themanagementisrequiredtomakeestimatesoftheusefullivesand
salvagevaluesoftheGroup’splantandequipmentandtoreviewestimatedusefullivesandsalvagevalueswhenthereareany
changes.
Inaddition,themanagementisrequiredtoreviewproperty,plantandequipmentforimpairmentonaperiodicbasisand
recordimpairmentlossesintheperiodwhenitisdeterminedthattheirrecoverableamountislowerthanthecarryingamount.
Thisrequiresjudgmentsregardingforecastsoffuturerevenuesandexpensesrelatingtotheassetssubjecttothereview.
Impairment of investment in subsidiaries and Joint venture
In considering impairmentof investment in a subsidiaries and Joint venture, theCompanyassesses the fair valueof
investmentinitssubsidiariesandJointventurebythepresentvalueoffuturecashflowsgeneratedbythesubsidiariesandJoint
venture,discountedbyadiscountratedeterminedbytheCompany’smanagement.Thecashflowprojectionsarebasedon
financialbudgets,whichreflectthesubsidiaryandJointventure’rebusinessplan,growthratesandexpensetorevenueratios.
Thevaluederivedfromtheafore-mentionedmethodmayvaryduetochangesincompetitiveforces,revenuestructure,cost
structure,industrialconditionsandeconomicconditions
142 143Annual Report 2018 CMO Public Company Limited
Post-employment benefits under defined benefit plans
Theobligationunderthedefinedbenefitplanisdeterminedbasedonactuarialtechniques.Suchdeterminationismade
basedonvariousassumptions,includingdiscountrates,futuresalaryincreaserates,mortalityrateandstaffturnoverrates.
Litigation
TheCompanyhascontingentliabilitiesasaresultoflitigation.TheCompany’smanagementhasusedjudgmenttoassess
oftheresultsofthelitigationandfoundthatitisprobablethatlosswillbeincured.Therefore,itrecordedcontingentliabilities
withestimatedfutureloss.
Goodwill
Theinitialrecognitionandmeasurementofgoodwill,andsubsequentimpairmenttesting,requiremanagementtomake
estimatesofcashflowstobegeneratedbytheassetorthecashgeneratingunitsandtochooseasuitablediscountrateinorder
tocalculatethepresentvalueofthosecashflows.
5. RELATED PARTY TRANSACTIONS
ThefollowingspresentrelationshipswithenterprisesandindividualsthatcontrolorarecontrolledbytheCompany,whether
directlyorindirectly,orhavecommondirectorsorshareholderswiththeCompany.
%Equityinterest
Relatedparties Natureofrelationships ownedbytheCompany
2018 2017
PMCenterCo.,Ltd. Subsidiarycompany 99.99 99.99
TheEyesCo.,Ltd. Subsidiarycompany 99.95 99.95
ExpositionTechnologyCo.,Ltd. Subsidiarycompany 40.00 40.00
MomentumSCo.,Ltd. Subsidiarycompany 56.99 56.99
MuseCorporationCo.,Ltd. Subsidiarycompany 69.99 69.99
ImaginiaCo.,Ltd. Subsidiarycompany 100.00 100.00
CMOShowCropCo.,Ltd. JointVenture 39.29 39.29
RightmanCo.,Ltd. Commondirectorsandshareholdings - -
TheCompanyhadbusinesstransactionswithrelatedparties.Thesepartiesaredirectlyandindirectlyrelatedthroughcommon
shareholdingand/ordirectorship.Thefinancialstatementsreflecttheeffectsofthesetransactionsonthebasisdeterminedbythe
Companyandthepartiesconcerned.FortheyearsendedDecember31,2018and2017thesignificanttransactionswithrelated
partiescanbesummarizedasfollows:
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Subsidiaries
Servicesincome - - 611 2,226
Dividendincome - - 19,816 26,640
Otherincome - - 8,009 15,954
Interestincome - - 7,700 8,453
Costofservices - - 98,290 67,212
Otherexpenses - - 2,507 1,976
Interest expenses - - 146 82
Join Ventures
Servicesincome 251 12,788 - -
Costofservices 400 - 200 -
Related parties
Servicesincome 3,052 12,305 - -
Costofservices - 13,370 - 13,370
TheCompanyengagesintransactionswithrelatedpartiesbyusingcostplusprofitandtheagreedcontractprice.
Management compensation – for key management personnel
FortheyearsendedDecember31,managementcompensation–forkeymanagementpersonnelconsistofthefollowing:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Short-termbenefits 62,206,546.94 57,668,837.85 30,494,380.25 28,728,648.03
Post-employmentbenefits 1,256,590.15 1,121,364.00 431,176.36 408,072.00
Total 63,463,137.09 58,790,201.85 30,925,556.61 29,136,720.03
144 145Annual Report 2018 CMO Public Company Limited
TheoutstandingbalancesfortheabovetransactionsasatDecember31,2018and2017havebeenshownseparatelyin
thestatementsoffinancialpositionandconsistofthefollowing:
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Trade receivables - related parties
TheEyesCo.,Ltd. - - - 200
CMOShowCorpCo.,Ltd. 30,656 33,612 8,025 8,025
RightmanCo.,Ltd 1,888 - - -
Totaltradereceivables-relatedparties 32,544 33,612 8,025 8,225
Less:Allowancefordoubtfulaccounts (6,124) (4,400) (1,605) (1,239)
Totaltradereceivables-relatedparties-net 26,420 29,212 6,420 6,986
Other receivables - related parties
PMCenterCo.,Ltd. - - 7,263 5,297
TheEyesCo.,Ltd. - - 5,779 3,709
ImaginiaCo.,Ltd - - 1,131 1,760
MuseCorporationCo.,Ltd - - 5 -
RightmanCo.,Ltd - 1,512 - 1,485
TotalOtherreceivables-relatedparties - 1,512 14,178 12,251
Accrued interest income - related parties
TheEyesCo.,Ltd. - - 2 -
CMOShowCorpCo.,Ltd. 204 204 204 204
Totalaccruedinterest-relatedparties 204 204 206 204
Less:Allowancefordoubtfulaccounts (204) (204) (204) (204)
Totalaccruedinterest-relatedparties-net - - 2 -
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Accrued dividend income - related parties
PMCenterCo.,Ltd. - - 9,500 13,600
TheEyesCo.,Ltd. - - 3,997 3,997
ExpositionTechnologyCo.,Ltd. - - 8,606 7,645
Totalaccrueddividendincome-relatedparties - - 22,103 25,242
Finance lease receivables - related parties
ImaginiaCo.,Ltd - - 14,417 18,999
TotalFinanceleasereceivables-relatedparties - - 14,417 18,999
Short-term loan to related parties
PMCenterCo.,Ltd. - - 71,000 76,000
TheEyesCo.,Ltd. - - 11,100 12,500
MomentumSCo.,Ltd. - - 7,600 14,600
ImaginiaCo.,Ltd - - 4,500 -
Totalshort-termloantorelatedparties-net - - 94,200 103,100
Long-term loan to related parties
CMOShowCorpCo.,Ltd. 61,557 35,580 61,557 35,580
Totallong-termloantorelatedparties 61,557 35,580 61,557 35,580
Decreasedshareoflossfrominvestments
injointventuresovercostof
investmentsduringtheyear (20,826) - - -
Less:Allowanceforlong-term
loanstorelatedparties (1,781) (1,781) (1,781) (1,781)
Totallong-termloantorelatedparties-net 38,950 33,799 59,776 33,799
146 147Annual Report 2018 CMO Public Company Limited
DuringtheyearsendedDecember31,theCompanyhadmovementsonloanstorelatedpartiesasfollows:-
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Short-term loans to related parties
Subsidiaries
Balanceatbeginningoftheyears - - 103,100 91,700
Increaseduringtheyears - - 27,500 35,600
Decreaseduringtheyears - - (36,400) (24,200)
Totalshort-termloantorelatedparties-net - - 94,200 103,100
Long-term loans to related parties
Join venture
Balanceatbeginningoftheyears 35,580 - 35,580 -
Increaseduringtheyears 25,977 35,580 25,977 35,580
Totallong-termloantorelatedparties 61,557 35,580 61,557 35,580
Decreasedshareoflossfrominvestments
injointventuresovercostof
investmentsduringtheperiods (20,826) - - -
Less:Allowanceforlong-term
loanstorelatedparties (1,781) (1,781) (1,781) (1,781)
Total long-term loan to related parties-net 38,950 33,799 59,776 33,799
TheCompanychargedinterestonloanstorelatedpartiesattheannualrateofMORandMOR+1%forsubsidiariesand5%
forjointventure.
TheCompanystoppedrecognizinginterestincomefromloanstothejointventurewheninterestisoverdueover3months.
Duringtheyears2018and2019,theGrouphasfiledStatementofClaimtotheCivilCourt,andonJanuary7,2019,asubsidiary
companyreportedachequecasetothepolice,inordertoenforcethejointventuretosettlethepaymentofthetradereceivables
totheGroup.
OnFebruary28,2019,theCompanyfiledaStatementofClaimfordamageinfordamagesinrelationtolong-termloans
torelatedpartiesandinvestmentinjointventurewiththegroupofshareholderswhojointlyinvestedwiththeCompanyfortort;
inducingtheCompanytoinvestandtogiveloanstothejointventurecompanyinwhichtherepresentationsmadebeforethe
investmentarenotasclaimedandtheoperationisnotincompliancewiththejointventureagreement.Themanagementand
lawyersoftheCompanyareawareoftheforegoingfactsandareintheopinionthattheCompanyhasachancetowinthecase.
Furthermore,currently,thecompanieswhichtheCompanyshalltakeactionwithhavesufficientassetstojointlypayforalldamages
totheCompany.ThemanagementbelievethattheultimateoutcomeofthecasewillnotcausematerialdamagestotheGroup
inexceedtheprovisiontheGrouphavealreadyprovidedforasofDecember31,2018.
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Trade payables from related parties
PMCenterCo.,Ltd. - - 23,098 8,370
TheEyesCo.,Ltd. - - 5,426 7,485
ExpositionTechnologyCo.,Ltd. - - 4,672 3,325
CMOShowCorpCo.,Ltd. 321 - - -
Totaltradepayablesrelatedparties 321 - 33,196 19,180
Other payables from related parties
MuseCorporationCo.,Ltd - - - 980
Totalotherpayablesfromrelatedparties - - - 980
Other expense from related parties
PMCenterCo.,Ltd. - - 164 164
Total other expenses from related parties - - 164 164
Accrued interest expenses - related parties
ExpositionTechnologyCo.,Ltd. - - - 13
Totalaccruedinterestexpenses-relatedparties - - - 13
Short-term loan from related parties
ExpositionTechnologyCo.,Ltd.
(Interestrate5%Perannum) - - - 3,000
Total short-term loan from relatedparties - - - 3,000
148 149Annual Report 2018 CMO Public Company Limited
DuringtheyearsendedDecember31,theCompanyhadmovementsontheshort-termloansfromrelatedpartiesasfollows:-
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Short-term loans from related parties
Subsidiaries (Interest rate 5% - 8.125% per annum)
Balanceatbeginningoftheyears - - 3,000 -
Increaseduringtheyears - - 13,000 7,000
Decreaseduringtheyears - - (16,000) (4,000)
Balanceatendoftheyears - - - 3,000
Directors
Balanceatbeginningoftheyears - - - -
Increaseduringtheyears 13,000 13,000
Decreasefromsubsidiariesdisposed (13,000) (13,000)
Balanceatendoftheyears - - - -
Total short-term loans from
relatedparties - - - 3,000
6. CASH AND CASH EQUIVALENTS
CashandcashequivalentsasatDecember31,consistedof:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Cashonhand 313,065.00 342,000.00 70,000.00 70,000.00
Cashatbanks-savingsaccount 40,704,019.90 14,630,503.69 18,833,075.33 1,840,534.28
Cashatbanks-currentaccount 5,051,261.11 2,928,178.72 52,549.77 38,697.77
Cashandcashequivalents 46,068,346.01 17,900,682.41 18,955,625.10 1,949,232.05
7. TRADE AND OTHER RECEIVABLES - NET
TradeandotherreceivablesasatDecember31,consistedof:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Tradereceivables
Tradereceivables-relatedcompanies 32,543,776.99 33,611,611.40 8,025,000.00 8,225,197.00
Tradereceivables-other 298,354,201.58 335,768,237.72 140,149,330.39 151,044,763.04
Total traderecivables 330,897,978.57 369,379,849.12 148,174,330.39 159,269,960.04
Less:Allowancefordoubtfulaccounts (12,198,706.91) (30,300,869.70) (1,742,172.08) (17,014,416.02)
Tradereceivables–net 318,699,271.66 339,078,979.42 146,432,158.31 142,255,544.02
Otherreceivables
Otherreceivables 5,385,336.51 6,759,868.56 4,820,196.91 5,059,615.26
Otherreceivables-relatedcompanies - 1,512,385.00 14,178,009.40 12,251,397.19
Advancetoemployees 3,257,889.36 4,921,026.42 1,543,459.00 1,718,011.31
Prepaidexpenses 3,791,877.87 3,814,337.29 1,227,961.55 1,548,982.00
Depositforpurchaseinventories 418,631.52 633,491.79 - -
UndueinputVAT 8,328,554.45 8,544,522.03 4,792,659.18 4,149,313.75
Accruedinterestincome-related
companies 204,109.58 204,109.58 205,779.10 204,109.58
RevenueDepartmentreceivable 378,996.71 1,881,324.54 - 109,746.12
Other 1,733,935.71 967,149.56 606,186.62 424,445.90
Totalotherreceivables 23,499,331.71 29,238,214.77 27,374,251.76 25,465,621.11
Less:Allowancefordoubtfulaccounts (250,784.58) (720,240.58) (250,784.58) (250,784.58)
Totalotherreceivables-net 23,248,547.13 28,517,974.19 27,123,467.18 25,214,836.53
Totaltradeandotherreceivables-net 341,947,818.79 367,596,953.61 173,555,625.49 167,470,380.55
150 151Annual Report 2018 CMO Public Company Limited
Tradereceivablescanbeclassifiedbyageanalysisasfollows:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Tradereceivables–relatedcompanies
Notyetdue 447,778.95 354,341.20 - 200,197.00
Pastdue
Over3monthsbutnotover6months 84,556.75 14,794,335.75 - 5,350,000.00
Over6monthsbutnotover12months - 8,465,847.89 - -
Over12months 30,407,441.29 9,997,086.56 8,025,000.00 2,675,000.00
Unbilledreceivables-relatedcompanies
Notyetdue 1,604,000.00 - - -
Totaltradereceivables–relatedcompanies 32,543,776.99 33,611,611.40 8,025,000.00 8,225,197.00
Tradereceivables-others
Notyetdue 116,222,342.48 193,661,121.10 43,478,167.26 99,771,792.45
Pastdue
Lessthan3months 59,724,752.46 75,141,328.60 26,135,960.76 8,537,759.43
Over3monthsbutnotover6months 27,459,280.78 4,838,487.24 26,165,945.03 1,035,632.34
Over6monthsbutnotover12months 5,981,613.29 3,691,548.15 250,527.13 -
Over12months 7,593,085.23 23,831,966.88 563,191.66 13,196,153.79
Unbilledreceivables-others
Notyetdue 60,016,836.82 26,891,299.45 40,064,048.02 20,996,909.45
Pastdue
Lessthan3months 8,693,558.24 109,140.00 1,899,058.24 -
Over3monthsbutnotover6months 4,143,010.19 4,599,798.00 150,760.20 4,599,798.00
Over6monthsbutnotover12months 7,644,250.00 92,000.00 1,304,500.00 92,000.00
Over12months 875,472.09 2,911,548.30 137,172.09 2,814,717.58
Total traderecivables-others 298,354,201.58 335,768,237.72 140,149,330.39 151,044,763.04
Total 330,897,978.57 369,379,849.12 148,174,330.39 159,269,960.04
Less:Allowancefordoubtfulaccounts (12,198,706.91) (30,300,869.70) (1,742,172.08) (17,014,416.02)
Tradereceivables–net 318,699,271.66 339,078,979.42 146,432,158.31 142,255,544.02
8. FINANCE LEASE RECEIVABLES – NET
Financeleasereceivablesconsistedof:
Unit:Baht
Separatefinancialstatements
2018 2017
Duewithin1year
Minimumpayments 6,000,000.00 6,000,000.00
Deferredinterest (1,019,126.97) (1,417,951.89)
Presentvalueofminimumpayment 4,980,873.03 4,582,048.11
Dueover1yearnotexceeding5years
Minimumpayments 10,154,000.00 16,154,000.00
Deferredinterest (717,689.69) (1,736,816.66)
Presentvalueofminimumpayment 9,436,310.31 14,417,183.34
OnFebruary1,2017,theCompanyenteredintoanagreementtoselltheoperatingequipmenttoasubsidiaryamounting
toBaht36.65million.The1stpaymentofBaht6millionwasreceivedonFebruary15,2017.The2ndpaymentofBaht4million
wasreceivedonFebruary28,2017.The3rd to the 55thpaymentwillbemademonthlyofBaht0.50million,onthe5th of the month
startingFebruary2017whilethe56thpaymentwillbeBath0.15million.TheCompanyrecordedgainfromdisposalofequipment
undertheagreementintheyearendedDecember31,2017amountingtoBaht0.58millionandgraduallyrecordedtheinterest
incomeattheeffectiveinterestrateoverthelifeoftheagreement,attherateof8.375%perannum,intheseparatefinancial
statements.
9. INVENTORIES - NET
InventoriesasatDecember31,consistedof:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Finishedgoods 819,235.70 952,926.89 - -
Workinprocess 7,222,755.47 21,074,957.98 5,007,210.31 10,215,878.41
TotalInventories 8,041,991.17 22,027,884.87 5,007,210.31 10,215,878.41
Lossoninventorydevaluation (862,382.56) (862,382.56) - -
Totalinventories-net 7,179,608.61 21,165,502.31 5,007,210.31 10,215,878.41
152 153Annual Report 2018 CMO Public Company Limited
During theyear, theCompany recognized itsshareof loss from its investment in the joint ventures,CMOShowCorp
Co.,Ltd.asfollow:
Unit:Baht
Consolidatedfinancialstatements
2018 2017
Shareoflossintheyears 33,730,618.31 38,900,392.58
Intercompanyprofitintheoutstandingequipmentofjointventure (2,979,359.74) (2,640,796.82)
Shareoflossfrominvestmentinjointventures 30,751,258.57 36,259,595.76
FinancialinformationofCMOShowCorpCo.,Ltd.issummarizedbelow:
Unit:ThousandsBaht
2018 2017
Statement of financial position
Cashandcashequivalents 461 179
Currentassets 48,260 28,632
Non-currentassets 214,465 254,614
Currentliabilities 127,766 209,242
Non-currentliabilities 188,432 41,335
Unit:ThousandsBaht
2018 2017
Statement of profit or loss
for the year ended December 31,
Totalrevenues 5,760 14,139
Netloss (85,778) (82,360)
Thereconciliationofthefinancialinformationtobookvalueofinvestmentinthejointventureaspresentedinconsolidated
financialstatementcanbesummarizedasfollow:
Unit:ThousandsBaht
2018 2017
Netassetsofjointventure (53,012) 32,848
Portionofequityinterestinjointventure(%) 39.2857% 39.2857%
Equity interest in net assets of joint venture (20,826) 12,904
LessIntercompanyprofitintheoutstandingequipmentofjointventure (21,603) (24,582)
Bookvalueofinvestmentinjointventure-net (42,429) (11,678)
10.
INVE
STM
ENTS
IN J
OIN
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NTU
RES
- N
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InvestmentsinjointventuresasatD
ecem
ber3
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prised
:
Unit:Th
ousand
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Con
solid
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Se
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te
financialstatements
financialstatements
Carrying
Carrying
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am
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Cou
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2018
20
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2018
20
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2018
20
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2018
20
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CMOSho
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39.2857
39.2857
140,000
140,000
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,904
55
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55
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bym
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tween
Thailegend
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logyasa
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Lessshareoflossfro
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finvestm
entspresented
asded
uctiontolong
-term
loanstolatedpa
rting
(20,82
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--
-
LessIntercom
panyprofitinth
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tstand
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(21,60
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--
TotalInvestm
entsinjointventure
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55,000
55
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Lessallowancefo
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55
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TotalInvestm
entsinjointventure-net
-
49,000
InvestmentinCMOSho
wCorpCo.,Ltd.byusingeq
uitymetho
dasatD
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ber31,2018,withoutstanding
amou
ntofB
aht0.00million
asaresultofaccum
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losssharinginjointventure,equ
alingtoth
einvestmentinjointventureofB
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plustherecorded
shareoflossinexceeding
thecostofinvestm
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thede
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loanstore
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dition,th
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omprehensiveincomefortheyear2
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itsshareoflossfrom
investmentinjointventuresofBaht3
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million
.TheJoint
venture’sfinancialstatementsusedfortheprepa
rationtheconsolidated
financialstatementsund
ertheeq
uitymetho
dwereprep
ared
bythecompa
ny’saccoun
tingstaff
.
154 155Annual Report 2018 CMO Public Company Limited
Duringtheyear2016,theGroupsolditsinvestmentinMomentumSCo.,Ltd.of3.01percent,resultingtheremainedof
investmentsat56.99percent.TheGroupreceivedproceedsfromthesaleofinvestmentsofBaht300,000.Thecapitaldeficiency
accordingtotheproportionofsalesofBaht3,380.88wastransferredtonon-controllinginterests.ThedifferenceofBaht303,380.88
betweendecreasinginnon-controllinginterestandcashreceivedispresentedaspartoftheownersoftheparent.
OnJuly1,2008,theCompanyacquired4,000ordinarysharesofExpositionTechnologyCo.,Ltd.,atBaht1,250pershare
(ParvalueofBaht100pershare),totalingBaht5million.Accordingtotheunauditedorun-reviewedfinancialstatements,the
acquisitionincurredcostsofBaht4.64millioninexcessofthebookvalueofthesubsidiarycompanyasatJuly1,2008.
Thesignificantofnon-controllinginterestsofsubsidiariesareasfollows:
(Unit:ThousandsBaht)
Comprehensive
income(loss)
Non-controlling attributableto Retained
Subsidiaries Country interests(%) non-controlling non-controlling
ExpositionTechnologyCo.,Ltd. Thailand 60% 5,841 13,903
Othersubsidiaries Thailand 0.01%-60.01% 6,186 3,894
Total 12,027 17,797
Financialinformationofsubsidiariesbeforeeliminatedtransactionisasfollows:
(Unit:ThousandsBaht)
ExpositionTechnologyCo.,Ltd. Othersubsidiaries Total
2018 2017 2018 2017 2018 2017
Currentassets 43,769 40,414 202,381 229,174 246,150 269,588
Non-currentasset 27,460 19,674 484,993 499,151 512,453 518,825
Currentliabilities (43,473) (37,557) (335,564) (380,338) (379,037) (417,895)
Non-currentliabilities (6,769) (4,290) (82,661) (98,686) (89,430) (102,976)
Non-controllinginterests 13,903 12,241 3,894 378 17,797 12,619
Non-controlling interests (%) 60% 60% 0.01%-60.01% 0.01%-60.01% 0.01%-60.01% 0.01%-60.01%
Revenues 189,843 178,551 740,722 893,237 930,565 1,071,788
Netprofit(loss)duringtheyearof
Non-controllinginterests 5,841 8,005 6,186 (626) 12,027 7,379
Netcomprehensiveincomeof
Non-controlling interests - - - - - -
Netcashfrom(usedin)
Operatingactivities 8,742 12,833 182,934 49,892 191,676 62,725
Investingactivities 1,018 10,399 (67,556) (29,116) (66,538) (18,717)
Financingactivities (5,439) (17,000) (108,538) (22,975) (113,977) (39,975)
Net increase (decrease) in cash 4,321 6,232 6,840 (2,199) 11,161 4,033
11.
INVE
STM
ENTS
IN S
UBS
IDIA
RIE
S –
NET
Investmentsinsub
sidiariesaspresented
insep
aratefinancialstatementa
satDecem
ber3
1,areasfollows:
Unit:Th
ousand
sBa
ht
Co
mpa
ny’sequ
ity
inte
rest
and
votingrig
hts(%
)Pa
id-upcapital
CostM
etho
dDivid
endincome
Su
bsidiaries
Country
Na
tureofb
usiness
2018
2017
2018
2017
2018
2017
2018
20
17PM
CenterC
o.,Ltd.
Thailand
Re
ntalequ
ipment
99.99
99.99
135,000
135,000
134,99
913
4,99
910
,800
18
,900
forimage,ligh
ting,
soundandeff
ects.
TheEyesCo.,Ltd.
Thailand
Prod
uctionof
99.95
99.95
15,000
15,000
14,601
14
,601
-
-
multi-visualslides,
vide
os,m
ultim
edia
andcompu
terg
raph
ics.
Expo
sitionTechno
logy
Thailand
Electrical
40.00
40.00
2,000
2,000
5,40
05,40
02,78
66,62
1
Co.,Ltd.
andlightingservices.
Mom
entumSCo.,Ltd.
Thailand
Eventm
anagem
ent
56.99
56.99
2,000
2,000
1,14
01,14
0-
-
forp
rivateevents,
wed
ding
cerem
onies,
birth
daypa
rtiesand
other.
MuseCorpo
ration
Thailand
Con
certorganizers,
69.99
69.99
7,500
7,500
5,25
05,25
06,23
01,11
9
Co.,Ltd.
sound,ligh
ting
andalltypes
ofm
ultim
edia.
ImaginiaCo.,Ltd.
Thailand
Am
usem
entp
ark
100.00
-10,000
-10
,000
-
--
andTh
emepa
rk.
Totalinvestm
ents
insub
sidiries
171,39
016
3,39
019
,816
26
,640
Less:Impa
irment
ofinvestment
(1,940
)(1,940
)To
talinvestm
ents
insub
sidiries-n
et
169,45
016
1,45
0
156 157Annual Report 2018 CMO Public Company Limited
12. PROPERTY, PLANT AND EQUIPMENT – NET
Property,plantandequipmentasatDecember31,2018consistedof:
Unit:Baht
Consolidatedfinancialstatements
Movementduringtheyear
Asat Reclassification Asat
January1,2018 Increase transferin transferout Disposal December31,2018
Cost
Land
-Atcost 65,702,303.07 - - - - 65,702,303.07
-Revaluationsurplus 144,749,220.00 - - - - 144,749,220.00
Atappraisedvalue 210,451,523.07 - - - - 210,451,523.07
Buildings 290,539,307.46 845,000.00 - - 762,321.54 290,621,985.92
Buildingimprovements 58,163,428.60 480,527.48 - - - 58,643,956.08
Buildingandequipmenton
leasedspace 538,103.74 - - - - 538,103.74
Operatingequipment 667,083,988.39 83,992,581.06 - - 3,523,345.74 747,553,223.71
Officeequipment 74,851,606.44 870,578.31 - - - 75,722,184.75
Furnitureandfixtures 4,426,331.86 316,054.71 - - 1,168,713.80 3,573,672.77
Vehicles 31,102,405.26 10,851,467.28 - - 4,836,890.20 37,116,982.34
Supplies-lighting 2,396,382.71 1,822,109.11 - - 1,985,932.49 2,232,559.33
Othersupplies 1,576,231.57 16,177,720.58 - - 14,501,361.97 3,252,590.18
Total 1,341,129,309.10 115,356,038.53 - - 26,778,565.741,429,706,781.89
Accumulated depreciation
Buildings 77,683,072.02 12,248,079.29 - 6,431,778.58 158,944.04 83,340,428.69
Buildingimprovements 21,648,337.70 7,859,828.26 9,971,317.61 - - 39,479,483.57
Buildingandequipmenton
leasedspace 265,738.97 96,006.87 - - - 361,745.84
Operatingequipment 534,817,578.85 70,413,521.72 - 3,539,539.03 3,523,165.74 598,168,395.80
Officeequipment 63,562,664.78 8,483,242.60 - - - 72,045,907.38
Furnitureandfixtures 2,814,072.34 560,628.42 - - 1,168,648.80 2,206,051.96
Vehicles 23,056,300.25 3,464,900.02 - - 4,392,403.36 22,128,796.91
Total 723,847,764.91 103,126,207.18 9,971,317.61 9,971,317.61 9,243,161.94 817,730,810.15
Allowance for impairment 3,843,122.59 50,727.15 - - - 3,893,849.74
Net booked value 613,438,421.60 608,082,122.00
DepreciationsfortheyearsendedDecember31,2018and2017,amountedtoBaht103.13millionandBaht105.19million,
respectively,intheCompany’sconsolidatedstatementsofprofitorloss.
AsatDecember31,2018and2017,theGroup’sequipmentandvehiclesamountingtoBaht498.08millionandBaht392.13
million,respectively,werefullydepreciatedbutstillinuse.
Unit:Baht
Separatefinancialstatements
Movementduringtheyear
Asat Reclassification Asat
January1,2018 Increase transferin transferout Disposal December31,2018
Cost
Land 390,000.00 - - - - 390,000.00
Buildings 75,293,248.20 845,000.00 - - 762,321.54 75,375,926.66
Buildingimprovements 35,208,758.78 70,000.00 - - - 35,278,758.78
Operatingequipment 49,836,587.48 2,670,326.78 - - 6,500.00 52,500,414.26
Officeequipment 14,249,044.02 137,220.00 - - - 14,386,264.02
Vehicles 9,146,941.14 3,268,224.30 - - 3,877,210.30 8,537,955.14
Total 184,124,579.62 6,990,771.08 - - 4,646,031.84 186,469,318.86
Accumulated depreciation
Buildings 20,649,919.90 3,772,638.47 - 6,024,730.62 158,944.04 18,238,883.71
Buildingimprovements 15,238,819.10 7,050,363.33 9,564,269.65 - - 31,853,452.08
Operatingequipment 48,369,180.58 1,679,942.63 - 3,539,539.03 6,499.00 46,503,085.18
Officeequipment 10,818,453.42 2,751,306.27 - - - 13,569,759.69
Vehicles 7,651,665.00 679,913.14 - - 3,432,728.46 4,898,849.68
Total 102,728,038.00 15,934,163.84 9,564,269.65 9,564,269.65 3,598,171.50 115,064,030.34
Allowance for impairment 2,998,198.88 2,998,198.88
Net booked value 78,398,342.74 68,407,089.64
DepreciationsfortheyearsendedDecember31,2018and2017,amountedtoBaht15.93millionandBaht17.48million,
respectively,intheCompany’sseparatestatementsofprofitorloss.
AsatDecember31,2018and2017,theCompany’sequipmentandvehiclesamountingtoBaht53.69millionandBaht
51.21million,respectively,werefullydepreciatedbutstillinuse.
TheGroup’slandandconstructionaremortgagedascollateralforlettersofguarantee,bankoverdraftsandloansfrom
financialinstitutions.
158 159Annual Report 2018 CMO Public Company Limited
13. INTANGIBLE ASSETS – NET
IntangibleassetsasatDecember31,2018,consistedof:
Unit:Baht
Consolidatedfinancialstatements
Asat Movementduringtheyear Asat
January1, Decrease/ December31,
2018 Increase transfer 2018
Cost
Licensefee 229,497.54 - - 229,497.54
Computersoftware 10,698,260.18 - - 10,698,260.18
Computersoftwareunderdevelopment 1,820,000.00 1,008,000.00 - 2,828,000.00
Total 12,747,757.72 1,008,000.00 - 13,755,757.72
Accumulated amortization
Licensefee 124,043.34 52,446.19 - 176,489.53
Computersoftware 6,755,910.98 2,022,315.02 - 8,778,226.00
Total 6,879,954.32 2,074,761.21 - 8,954,715.53
Net booked value 5,867,803.40 4,801,042.19
Unit:Baht
Separatefinancialstatements
Asat Movementduringtheyear Asat
January1, Decrease/ December31,
2018 Increase transfer 2018
Cost
Computersoftwareunderdevelopment 1,820,000.00 962,000.00 - 2,782,000.00
Total 1,820,000.00 962,000.00 - 2,782,000.00
Net booked value 1,820,000.00 2,782,000.00
AmortizationfortheyearendedDecember31,2018,intheconsolidatedfinancialstatementsofBaht2.07millionareincluded
inthestatementsofprofitorloss.
14. DEFERRED TAX ASSETS AND LIABILITIES - NET
Movementsindeferredtaxassetsandliabilitiesduringtheyearareasfollows:
Unit:ThousandsBaht
Consolidatedfinancialstatements
Asat Movementincrease(decrease) Asat
January1, Other December31,
2018 Profitorloss comprehensive 2018
Deferred tax assets :
Allowancefordoubtfulaccounts 4,094 (3,037) - 1,057
Lossoninventorydevaluation 173 - - 173
Allowanceforimpairment 768 - - 768
Provisionforemployee
benefitobligations 5,414 614 - 6,028
Provision 360 - - 360
Depreciationofsupply 312 59 - 371
Depreciation - 910 - 910
Deferred tax liabilities :
Surplusonlandrevaluation 28,950 - - 28,950
Depreciation 1,454 (1,454) - -
Deferred tax assets - net 6,972 (2,914) - 4,058
Deferred tax liabilities - net 26,256 (2,915) - 23,341
Unit:ThousandsBaht
Separatefinancialstatements
Asat Movementincrease(decrease) Asat
January1, Other December31,
2018 Profitorloss comprehensive 2018
Deferred tax assets :
Allowancefordoubtfulaccounts 3,183 (3,183) - -
Allowanceforimpairment 600 - - 600
Provisionforemployee
benefitobligations 1,570 128 - 1,698
Provision 360 - - 360
Total deferred tax assets 5,713 (3,055) - 2,658
160 161Annual Report 2018 CMO Public Company Limited
TaxexpensesfortheyearsendedDecember31,areasfollows:
Unit:ThousandsBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Profitbeforeincometax 91,782 66,298 24,225 59,387
Incometaxrate 20% 20% 20% 20%
Currentincometaxastaxrate 18,356 13,260 4,845 11,877
Non-deductibleexpensesbytheRevenueCode 11,652 5,539 10,737 2,688
DoubleexpensesbytheRevenueCode (2,946) (2,067) (253) (357)
Dividendincome - - (3,963) (5,328)
Inter-compnaytransactions (10,393) (1,380) - -
Shareoflossofinvestmentinjointventures 6,746 7,780 - -
Unutilizedtaxlosscarryforward 1,956 2,729 - -
Utilizedtaxlosscarryforwardunrecord (1,135) (2,608) - (2,189)
Unrealizegainfromsalesofinventories
tojointventure (596) (528) - -
Adjustunutilizeddefertaxassets 3,184 - 3,183 -
Tax expenses 26,824 22,725 14,549 6,691
Theaverageeffectivetaxrate 29% 34% 60% 11%
TheGrouphasunusedtaxlosscarryforwardasatDecember31,2018,amountingtoBaht10.57million,respectively.Due
totheuncertaintyoftheutilization,therefore,themanagementconsidersnottorecognizethisdeferredtax.
TheGroupusedtheincometaxrateof20%forthecalculationofcorporateincometaxfortheyearsendedDecember31,
2018and2017.
15. OTHER NON-CURRENT ASSETS
Othernon-currentassetsasatDecember31,consistedof:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Withholdingincometax 78,765,644.15 75,852,530.57 63,118,806.47 56,998,608.80
Deposits 10,115,961.60 11,953,667.67 8,194,772.44 10,330,540.29
Totalothernon-currentassets 88,881,605.75 87,806,198.24 71,313,578.91 67,329,149.09
16. BANK OVERDRAFTS AND SHORT-TERM LOANS FROM FINANCIAL INSTITUTIONS
Bankoverdraftsandshort-termloansfromfinancialinstitutionsasatDecember31,comprised:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Bankoverdrafts 45,298,782.57 61,474,884.67 17,840,862.22 33,932,482.11
Factoringtransactions 17,544,335.35 45,949,467.70 5,073,485.35 8,312,784.26
Lessprepaidinterest (151,412.44) (128,380.05) (54,835.93) (64,964.82)
Factoring-net 17,392,922.91 45,821,087.65 5,018,649.42 8,247,819.44
Promissorynotes 198,600,000.00 190,202,101.41 163,600,000.00 150,200,000.00
Lessdiscount (1,056,943.26) (987,097.35) (751,883.70) (669,726.15)
Promissorynotes-net 197,543,056.74 189,215,004.06 162,848,116.30 149,530,273.85
Totalbankoverdraftsandshort-term
loansfromfinancialinstitutions 260,234,762.22 296,510,976.38 185,707,627.94 191,710,575.40
AsatDecember31,2018and2017,theGrouphadbankoverdraftsandshort-termloansfacilitiesasfollows:-
Unit:MillionBaht
2018 2017
CMOPublicCompanyLimitedandsubsidiaries 581.0 611.3
CMOPublicCompanyLimited 313.0 303.0
AsatDecember31,2018and2017,bankoverdrafts,short-termloans,andlong-termloanfromfinancialinstitutions,incurring
interestratesbetweenthemarketrateandMOR,areguaranteedbycertaindirectorsoftheCompany’andthesubsidiaries,by
amortgageoftheGroup’slandandconstructions,andbyrestricteddepositsatbanks.
162 163Annual Report 2018 CMO Public Company Limited
17. TRADE AND OTHER CURRENT PAYABLES
TradeandothercurrentpayablesasatDecember31,comprised:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Trade payables
Tradepayables-relatedparties 321,000.00 - 33,195,594.76 19,179,682.30
Tradepayables-other 114,773,250.10 122,662,057.13 48,655,661.42 52,253,964.40
Totaltradepayables 115,094,250.10 122,662,057.13 81,851,256.18 71,433,646.70
Othercurrentpayables
Otherpayables 2,286,532.03 4,314,014.90 758,966.36 2,167,652.50
Accruedexpenses 17,448,307.74 30,403,318.37 1,416,119.15 16,050,071.62
Accruedwithholdingtax 5,621,130.41 3,099,445.65 3,276,334.03 1,424,342.99
Accruedinterestexpense-relatedparties - - - 12,739.73
Accountspayableforpurchasesoffixedassets 593,422.00 8,025.00 556,507.00 8,025.00
Unearnedincomereceivedfromcustomers 7,535,180.17 13,329,981.31 2,668,886.60 3,309,641.46
RevenueDepartmentpayable 3,263,793.02 843,863.47 1,777,355.25 -
UndueoutputVAT 19,144,021.96 20,779,089.40 7,201,592.66 8,032,604.20
Deposit 2,691,950.43 1,739,548.49 511,171.00 507,031.00
Provisions 1,800,000.00 1,800,000.00 1,800,000.00 1,800,000.00
Other 5,463,384.24 3,886,698.74 315,576.00 261,348.00
Totalothercurrentpayables 65,847,722.00 80,203,985.33 20,282,508.05 33,573,456.50
Totaltradeandothercurrentpayables 180,941,972.10 202,866,042.46 102,133,764.23 105,007,103.20
18. LIABILITIES UNDER FINANCIAL LEASE AGREEMENTS - NET
LiabilitiesunderfinancialleaseagreementsasatDecember31,comprised:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Duewithin1year
Minimumpayments 28,356,065.53 16,557,311.64 1,032,919.65 357,785.08
Deferredinterest (2,731,474.91) (1,683,326.73) (104,725.21) (63,601.01)
Presentvalueofminimumpayment 25,624,590.62 14,873,984.91 928,194.44 294,184.07
Dueover1yearnotexceeding5years
Minimumpayments 34,424,022.12 19,678,976.64 1,501,902.87 791,197.70
Deferredinterest (1,621,324.48) (1,059,769.61) (61,858.52) (60,702.39)
Presentvalueofminimumpayment 32,802,697.64 18,619,207.03 1,440,044.35 730,495.31
Netbookvalueofequipment
underfinanceleasesagreements 78,071,476.30 58,024,482.24 3,473,138.58 1,343,187.69
TheGroupenteredintoleaseagreementswithabankandcertaincompaniesforoperatingequipmentandvehicles.The
leasesagreementshavethetermsofthreetofiveyearsandbearinterestratesof2.07%to7.50%perannum.
19. LONG-TERM LOANS FROM FINANCIAL INSTITUTIONS - NET
Long-termloansfromfinancialinstitutionsasatDecember31,comprised:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Long-termloansfrombanks 69,258,529.08 90,584,868.44 36,608,696.08 36,698,391.44
Lesscurrentportion (39,424,032.59) (35,497,270.20) (20,884,199.59) (14,260,626.20)
Long-termloans-net 29,834,496.49 55,087,598.24 15,724,496.49 22,437,765.24
Movementsinthelong-termloansduringtheyearsendedDecember31,aresummarizedbelow.
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
BalanceasatJanuary1, 90,584,868.44 148,700,649.56 36,698,391.44 57,400,234.18
Add:Additionalborrowings 20,000,000.00 - 20,000,000.00 -
Less:Repayment (41,326,339.35) (58,115,781.12) (20,089,695.35) (20,701,842.74)
BalanceasatDecember31, 69,258,529.09 90,584,868.44 36,608,696.09 36,698,391.44
164 165Annual Report 2018 CMO Public Company Limited
The Company
AsatDecember31,2018and2017,theCompany’slong-termloansfrombankscarriedinterestatMLRminuscertainrate,
asstipulatedintheagreement.Therepaymentsoftheprincipleandinterestaretobemademonthly.Fullsettlementofthese
loansistobemadewithinMay2020toJanuary2021.
Subsidiaries
AsatDecember31,2018and2017,thesubsidiaries’long-termloansfrombankscarriedinterestatMLRminuscertain
rate,asstipulatedintheagreement.Therepaymentsoftheprincipleandinterestaretobemademonthly.Fullsettlementofthese
loansistobemadewithinJuly2021toJuly2022.
Theloanagreementscontainseveralcovenantswhich,amongotherthings,requiretheCompanyanditssubsidiariesto
maintaindebt-to-equityratioanddebtservicecoverageratioattherateprescribedintheagreements.
Alllong-termloansfromfinancialinstitutionareguaranteedbyamortgageoftheCompany’sanditssubsidiary’slandand
constructions,pledgeoffixeddeposits,andguaranteesbytheCompanyanditssubsidiary.
20. NON–CURRENT PROVISION FOR EMPLOYEE BENEFITS
Movementofthepresentvalueofprovisionforlong-termemployeebenefitsfortheyearsendedDecember31,isasfollows:
Unit:Baht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Non-current provision for employee benefits
beginning of the years 27,071,057.00 24,397,404.00 7,851,248.00 7,239,108.00
Includedinprofitorloss:
Currentservicecosts 2,282,486.00 2,323,900.00 426,531.00 415,237.00
Costofinterest 785,988.00 704,013.00 213,554.00 196,903.00
Employeebenefitobligations
ofsubsidiariesdisposed - (354,260.00) - -
Non-current provision for employee benefits
ending of the years 30,139,531.00 27,071,057.00 8,491,333.00 7,851,248.00
Employeebenefitexpensespresentonadministrativeexpensesinthestatementsofprofitorloss.
Principalactuarialassumptionsatthevaluationdateareasfollow:
(Percentage(%)/annum)
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Discountrate 2.62-3.64 2.62-3.64 2.72 2.72
Futuresalaryincreaserate 3-6 3-6 5 5
Mortalityrate 80% 80% 80% 80%
ofThaiMortalityOrdinary ofThaiMortalityOrdinary
Tablesof2008 Tablesof2008
Employeeturnoverrate
Ageunder25year 22.92-57.30 22.92-57.30 45.84 45.84
Ageover25andupto30years 17.19-42.98 17.19-42.98 34.38 34.38
Ageover30andupto35years 11.46-28.65 11.46-28.65 22.92 22.92
Ageover35andupto40years 7.64-19.10 7.64-19.10 15.28 15.28
Ageover40andupto45years 5.73-14.33 5.73-14.33 13 13
Ageover45andupto50years 3.82-9.55 3.82-9.55 13 13
Ageover55andupto60years 1.91-4.78 1.91-4.78 13 13
OnDecember13,2018,TheNationalLegislativeAssemblypassedaresolutionapprovingthedraftofanewLabourProtection
Act,whichis intheprocessbeingpublishedintheRoyalGazette.ThenewLabourProtectionActstipulatesadditional legal
severancepayrates foremployeeswhohaveworkedforanuninterruptedperiodof twentyyearsormore.Suchemployees
areentitledtoreceivecompensationofnot lessthanthatofthe last400days,basedonthefinalwagerate.Thischangeis
consideredapost-employmentbenefitsplanamendmentandtheGroupisintheprocessofevaluatingtheimpacttothefinancial
statementswhenthelawiseffective.
21. LEGAL RESERVE
IncompliancewiththePublicCompanyAct,B.E.2535(1992),theCompanysetasideasalegalreserveatleast5%ofits
netprofituntilthereserveequal10%oftheauthorizedsharecapital.Thisreserveisnotavailablefordividenddistribution.
166 167Annual Report 2018 CMO Public Company Limited
22. DIVIDEND PAYMENT
PursuanttoAnnualMeetingofShareholders,heldonApril25,2018theshareholdersauthorizedthepaymentofeligible
shareholdersadividendfromtheprofittheyear2017toshareholdersofBaht0.10pershare,amountingtoBaht25.55million.
ThedividendwaspaidonMay24,2018.
PursuanttotheMeetingofBoardofDirectorsNo.3/2017,heldonAugust10,2017,approvedtothepaymentofeligible
shareholdersadividendfromtheprofitforthesix-monthperiodendedJune30,2017toshareholdersofBaht0.08pershare,
amountingtoBaht20.44million.ThedividendwaspaidonSeptember5,2017.
PursuanttoAnnualMeetingofShareholders,heldonApril27,2017theshareholdersauthorizedthepaymentofeligible
shareholdersadividendfromtheprofittheyear2016toshareholdersofBaht0.055pershare,amountingtoBaht14.05million.
ThedividendwaspaidonMay25,2017.
23. EXPENSES BY NATURE
ExpensesbynaturefortheyearsendedDecember31,areasfollows:
(Unit:MillionBaht)
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Costofservice 899.65 839.41 402.11 375.06
Employeebenefits 275.27 270.14 115.53 114.81
Depreciationandamortization 105.20 107.39 15.93 17.78
Advertisingfee 0.95 1.20 0.72 0.36
Managementcompensation 63.46 58.79 30.93 29.14
AllowanceforDoubtfulAccounts 2.76 6.18 0.53 3.02
24. FINANCIAL INFORMATION BY SEGMENT
TheGroupengagesinthebusinessofeventmanagementoperateforpublic,exhibitionandvariousentertainmentactivities
inThailand.Therevenuesseparatedbybusinesssegmentsareasfollows: For the year ended December 31, 2018 Unit:ThousandsBaht
Consolidated Financial Statements
Installation
Rental Production suppliesand Amusement
Organizer Equipment ofMedia Electrical park Eliminated Total
Revenues
Marketing and
PromotionEvents 399,641
Trade Shows and
Exhibitions 106,174
PublicEvents 217,247
Professional
ExhibitionOrganizer 20,372
Museum 53,083
Total 796,517 486,015 50,625 189,737 27,143 (100,941) 1,449,095
Costofservices (1,100,353)
Grossprofit 348,742
Otherincome 9,150
Sellingexpenses (12,752)
Administrativeexpenses (198,327)
Financecosts (24,279)
Shareoflossfrominvestments
usingtheequitymethod (30,751)
Profitbeforeincometax 91,783
Taxexpense (26,825)
Profit(loss)fortheyear 28,401 33,008 1,149 9,712 (9,848) 2,535 64,958
Profitattributableto
EquityholdersoftheCompany 52,931
Non-controllinginterests 12,027
64,958
As at December 31, 2018
Trade and other
receivables-net 194,479 146,694 17,313 30,359 830 (47,728) 341,948
Propertyplantand
equipment-net 69,682 388,120 33,863 20,957 9,887 85,573 608,082
Other 481,446 47,247 4,337 20,582 5,104 (351,824) 206,892
TotalAssets 745,607 582,061 55,513 71,898 15,821 (313,979) 1,156,922
168 169Annual Report 2018 CMO Public Company Limited
FortheyearendedDecember31,2017 Unit:ThousandsBaht
Consolidated Financial Statements
Installation
Rental Production suppliesand Amusement
Organizer Equipment ofMedia Electrical park Eliminated Total
RevenuesMarketing and
PromotionEvents 236,753
Trade Shows and
Exhibitions 145,337
PublicEvents 151,502
MICE 9,216
Professional
ExhibitionOrganizer 20,494
Museum 124,218
Total 687,520 524,875 43,922 177,630 21,788 (93,499) 1,362,236
Costofservices (1,043,273)
Grossprofit 318,963
Otherincome 14,205
Sellingexpenses (6,511)
Administrativeexpenses (198,703)
Financecosts (25,397)
Shareoflossfrominvestments
usingtheequitymethod (36,260)
Profitbeforeincometax 66,298
Taxexpense (22,724)
Profit(loss)fortheyear 53,360 41,968 (628) 12,963 (6,337) (57,751) 43,574
Profitattributableto
EquityholdersoftheCompany 36,195
Non-controllinginterests 7,379
43,574
As at December 31, 2017
Trade and other
receivables-net 194,025 167,245 13,365 25,751 2,185 (34,975) 367,597
Propertyplantand
equipment-net 79,930 376,857 38,489 17,206 17,977 82,979 613,438
Other 498,730 52,409 7,022 16,543 6,443 (381,846) 199,301
TotalAssets 772,685 596,511 58,877 59,500 26,605 (333,842) 1,180,336
25. FINANCIAL INSTRUMENTS
Financial Risk Management
TheGroupisexposedtorisksfromchangesinmarketinterestrates,andfromnonperformanceofcontractualobligations
bycounterparties.TheGroupdoesnotusederivativeinstrumentstomanagesuchrisks.Theydonotholdorissuederivative
instrumentsforspeculativeortradingpurposes.
Interest rate risk
TheinterestrateriskconstitutesfuturemovementsinmarketinterestratesthatwillaffecttheresultsoftheGroup’soperations
and its cashflows.TheGroup’sexposure to interest rate risk relatesprimarily to itsdepositswithand loans fromfinancial
institutions,andshort-termloansfromrelatedparties.
Sincethemajorityofthesefinancialassetsandliabilitiesareshort-termandlong-termloansbearfloatinginterestrates,the
Group’sbelievethattherewillbenomaterialimpactontheirrespectivefinancialstatements.
Foreign currency risk
Foreignexchangerateriskarisesfrompurchasingequipmentinforeigncurrency.ThemanagementbelievesthattheGroup’s
foreignexchangerateriskisminimal,sothereisnoanycontracttohedgesuchrisk.
Credit Risk
TheGroupprovidescredittermstoeachcustomerafterconfirminghercreditworthiness. The collection of accounts
receivablesiscloselymonitoredandwillfocusontheoverduereceivablesandtheGroupwillmakeaprovisionforaccounts
receivablethatisoverdueformorethan365days.Presently,theGroup’smanagementbelievethatthereisnosignificantloss
arisingfromtheuncollectedreceivables
Fair Value
As themajorityoffinancialassetsand liabilitiesareshort-termand long-term loansbearingfloating interest rates, the
Company’sandthesubsidiaries’managementbelievethattheircarryingvaluesoffinancialassetsandliabilitiesdonotmaterially
differfromtheirfairvalue.
The risk of liquidity
TheGroupmonitorsitsliquidityriskbymaintainingalevelofcashandcashequivalentsdeemedadequatebymanagement
tofinancetheGroupandtomitigatetheeffectsoffluctuationsincashflows.
Capital management
TheBoard’spoliciesaretomaintainastrongcapitalbasesoastoprovideassurancetoshareholders,investors,creditors
andmaintainmarketconfidence,andtosustainfuturedevelopmentofthebusiness.TheBoardmonitorsthereturnoncapital
whichtheCompanydefinesasresultfromoperatingactivitiesdividedbytotalshareholders’equity,excludingnon-controlling
interestsandalsomonitorsthelevelofdividendstoordinaryshareholders.
170 171Annual Report 2018 CMO Public Company Limited
26. PROVIDENT FUND
TheGroupandtheiremployeeshavejointlyestablishedaprovidentfundinaccordancewiththeProvidentFundActB.E.
2552.BothemployeesandtheCompanycontributetothefundonamonthlybasisattherateof3%-15%ofsalary.Thefund,
whichismanagedbyTISCOAssetManagementCompanyLimited,willbepaidtoemployeesuponterminationinaccordance
withthefundrules.TotalcontributionsbytheGroupfortheyearsendedDecember31,2018and2017amountedtoapproximately
Baht6.37millionandBaht5.35millionrespectively,intheconsolidatedfinancialstatement,andamountedtoBaht2.85million
andBaht2.47millionrespectively,intheseparatedfinancialstatement.
27. COMMITMENTS AND CONTINGENT LIABILITIES
AsatDecember31,2018and2017,theGrouphascontingentliabilitiesinrelationtothelettersofguaranteeissuedby
banksamountingtoBaht85.6million.
TheGrouphascommitmentswithregardtooperatingleaseagreementswheretheGroupisthelesseewithleasingterms
of1-3years.Thecontractcannotbeterminated.
AsatDecember31,2018and2017,theGrouphadobligationstorenderleasepaymentsinthefutureasfollows:
Unit:MillionBaht
Consolidatedfinancialstatements Separatefinancialstatements
2018 2017 2018 2017
Duewithin1year 4.41 6.04 1.97 1.94
Dueover1yearbut
notover5years 1.57 1.16 0.07 1.92
Total 5.98 7.20 2.04 3.86
AsatDecember31,2018and2017,theGrouphasthecommitmentfromfactoringaccountreceivabletofinancialinstitution
incaseofdefaultedondebtofBaht17.54millionandBaht45.95millionrespectively.
28. LITIGATION
OnAugust2,2018,thejointventurewassuedfordamagesunderBlackCourtCaseNo.1453P/2017.TheCourtofFirst
InstanceruledthattheCompanymustcompensatetheplaintiffintheamountofBaht53.97million.OnJanuary25,2019,the
CompanyfiledanappealwiththeAppealsCourt,accordingtoRedCaseNo.3803P/2518.Legalcounselrepresentingboththe
Companyandthejointventure,aswellastheManagementofbothentities,believethecasewillnotcreatematerialdamageto
thejointventure.
OnNovember29,2018,acontractorsuedtheCompanyfordamages,intheamountofBaht53.97million,accordingto
BlackCourtNo.1453P/2017.LegalcounselandManagementoftheCompanybelievethattheoutcomeofthecasewillnotcause
anydamage.Therefore,theCompanyhasnotprovisionedforanyliabilitiesthatmayarisefromthecase.
29. EVENT AFTER THE REPORTING PERIOD
OnFebruary1,2019, theExtraordinaryGeneralShareholders’MeetingofPMCenterCo.,Ltd.,asubsidiary,passeda
resolutionapprovingaregisteredcapitalincrease,fromBaht135milliontoBaht165million,orBaht30millioninall,byissuing
300,000newordinaryshareswithaparvalueofBaht100pershare.AstheCompanyacquiredallsuchadditionalordinaryshares,
itsshareholdingremainsunchangedat99.99%.
OnFebruary7,2019,theCompanyreceivedatransferof400sharesfromMomentumSCo.,Ltd.,asubsidiary,atthetotal
priceofBaht80,000,asaresulttheCompany’sshareholdinginthesubsidiaryincreasedfrom56.99%to58.99%.
30. APPROVAL OF FINANCIAL STATEMENT
ThesefinancialstatementshavebeenapprovedbytheBoardofDirectorsforissuanceonFebruary28,2019.
172 173Annual Report 2018 CMO Public Company Limited
No. of share Relationship As of 28 Name Age Education December 2018
No. of share Relationship As of 28 Name Age Education December 2018
Year Position Company Year Position Company
67
55
65
- MM , Graduate Institute of Business Administration of Chulalongkorn University (SASIN)- National Director Conference 2016- Director Forum 2/2015- RCL 1/2015- AACP 17/2014- RMP 1/2013- Risk Resilience 2/2013- CNBC 3/2013- R-Forum 1/2013- DTT 1/2013- AGM 1/2013- NDC 1/2013- DBT 1/2013- HRP 2/2012- QFR 1/2006- DAP 1/2004 - ACP 2/2004 - DCP 17/2002
- Master of Laws, Harvard University – Harvard Law School- Master of Laws, University of Chicago Law School- DAP 143/2017
- Bachelor of Communication Arts. Chulalongkorn University- Chartered Director Class 2014- RCC 2014- DCP 2011
-
-
-
2003-Present
2007-Present
2004-Present
2001-Present
2008-Present
2000-Present
2016-Present
2002-Present2002-Present2003-Present2003-Present2004-Present
2004-Present2004-Present2006-Present
2015-Present2015-Present2015-Present
2015-Present
2016-Present
2017-Present
2015-Present
2018-Present2015-2016
2015
2014-20152011-2014
- Independent Director, Member of the Audit Committee and Chairman of The Risk Management Committee- Independent Director and Member of the Audit Committee- Independent Director, Member of the Audit Committee / Chairman of the Risk Management Committee / Director of the Nomination and Compensation Committee - Independent Director, Member of the Audit Committee and Chairman of the Risk Management Committee- Independent Director and Member of the Audit Committee- Chairman
- Director and Audit Committee - Director - Director - Director - Director - Director
- Director - Director - Director
- Director - Director - Director
- Director
- Director and Audit Committee- Director
- Advisor
- Advisor- Director
- Chairman
- Vice Chairman- President & CEO
- CMO Public Company Limited
- Raja Ferry Port Public Company Limited
- Fortune Parts Industry Public Company Limited
- Supalai Public Company Limited
- Zeer Property Public Company Limite
- The Brilliant Solution Co., Ltd.
- CMO Public Company Limited
- HIS Tong nan co., Ltd- Tong nan Holdings Co., Ltd.- Cavalino Holdings Co., Ltd.- Tevalai Co., Ltd.- Royal Advocates International Co., Ltd.- Vijja (Holdings) Co., Ltd.- HIS (Thailand) Co., Ltd.- Zen Capital (Thailand) Co., Ltd.- Naiton Beach Co., Ltd.- Malaiwana Hill Co., Ltd.- Malaiwana Beach Club Co.,Ltd.- Malaiwana Resort Co., Ltd.
- CMO Public Company Limited
- Sritrang Public Company Limited- Berli Jucker Public Company Limited- BanpuInfinergyCo.,Ltd.- Queen Sirikit Botanic Garden Organization- Thailandpost Distribution Co., Ltd.- Thailandpost Co., Ltd.- Thailandpost Co., Ltd.
Working Experience last 5 years Working Experience last 5 years
Attachment1.1InformationofBoardofDirectorandExecutiveManagementofCMOPublicCompanyLimitedasatDecember31,2018
Attachment 1
1. Mr. Anant Gatepithaya
2. Mr. Netipong Wichitwechkarn
3. Miss Anusra Chittmittrapap
58
63
54
46
46
44
47
44
40
42
- BCA, Chulalongkorn University - DAP 10/2004
- Ph.D. in Philosophy, The Ohio State University- DAP 111/2014
- Faculty of Architecture, Chulalongkorn University, Bachelor’s degree of Industrial design
- Master of Business Administration at Queensland University of Technology, Australia
- Bachelor of Communica tion Arts, Payap University
- Interior Architecture, King Mongkut’s Institute of Technology
- Bachelor of Communication Arts, Bangkok University
- Bachelor of Communication Arts, Thammasat University
- International Business Management, Business school University of Surrey, UK- FPCS 19/2008- CSP 33/2009- EMT 15/2009
- Master’s Degree of Business Administration (Accounting), Ramkham haeng University- CPD
64,548,932 share
(25.267%)
None
39,670,000 share
(15.529%)
6,250 share(0.002%)
None
None
None
None
25 share(0.00001%)
25 share(0.00005%)
Relative of(Mr. Chalay Kunawong)
Relative of(Mr.
Sermkhun Kunawong)
-
-
-
-
-
-
-
-
2003-Present
2017-Present2015-Present2015-Present2014-Present2008-Present2003-Present1986-Present
2013-Present2017-Present2015-Present2014-Present2003-Present1986-Present1990-Present
2017-Present2018-Present2017-Present2017-Present2016-Present2013-Present2012-Present
1990-Present
2012-Present2007-2012
2013-Present2004-2013
2015-Present2007-2014
2017-Present
2015-2016
2017-Present
2015-2016
2016-Present 2009-Present
2015-Present
- ChiefExecutiveOfficer and Chairman - Chairman- Director- Chairman- Chairman- Director- Chairman- Chairman
- Director- Director- Director- Director- Director- Director- Managing Director
- Director- Director- Director- Director- Director- Director- Director Chairman of Board of Directors- Chairman of Board of Directors
- Managing Director- Director
- Managing Director- Director
- Managing Director- Director
- Managing Director (1 January 2017) - Acting Director
- Managing Director (1 January 2017) - Director
- ChiefFinancialOfficer- Company Secretary
- Senior Accounting Manager
- CMO Public Company Limited
- Imaginia Co., Ltd- CMO Show Crop Co., Ltd- Muse Corporation Co., Ltd.- Momentum S Co., Ltd.- Exposition Technology Co., Ltd.- PM Center Co., Ltd.- The Eyes Co., Ltd.
- CMO Public Company Limited - Imaginia Co., Ltd.- Muse Corporation Co., Ltd.- Momentum S Co., Ltd.- PM Center Co., Ltd.- The Eyes Co., Ltd- Ongsa Architects Co., Ltd.
- CMO Public Company Limited - Breathtaking Co.,Ltd- Phenomoeon Creation Co.,Ltd- Ignition Co., Ltd.- FWR Co., Ltd.- WrokRight Jointventure- Rightman North Col, Ltd.
- Rightman Co., Ltd.
- CMO Public Company Limited- CMO Public Company Limited
- CMO Public Company Limited- CMO Public Company Limited
- CMO Public Company Limited- CMO Public Company Limited
- CMO Public Company Limited
- CMO Public Company Limited
- CMO Public Company Limited
- CMO Public Company Limited
- CMO Public Company Limited - CMO Public Company Limited
- CMO Public Company Limited
4. Mr. Sermkhun Kunawong
5. Mr. Chalay Kunawong
6. Mr. Upathum Nisitsukcharoen
7. Miss Jutiporn Mingkwanrungrueng
8. Mongkol Silthumpitug
9. Wanna Issarangkul Na Ayutaya
10. Miss Thanaporn Phetluan
11. Miss Chanasa Dermsombull
12. Miss Piyamart Yongsirichaisakul
13. Miss Nantiya Sowapast
240,000 shares
(0.094%)
None
None
Attachment1.1InformationofBoardofDirectorandExecutiveManagementofCMOPublicCompanyLimitedasatDecember31,2018
176 177Annual Report 2018 CMO Public Company Limited
Attachment1.2InformationofBoardofDirectors,ExecutiveManagementsandDirectorwhohaveAuthorizetoSignofCMOPublicCompanyLimited
andSubsidiariesasatDecember31,2018.
Subsidiaries
S. PM The Exposition Momentum Muse
CMO Cubic Center Eyes Technology S Corporation Imaginia
Plc. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
1. Mr.AnantKatepithaya //,/////
2. Mr.NetipongWichitwechkarn //,/////
3. Ms.AnusraChittmittrapap //,/////
4. Mr.SermkhunKunawong /,//,///,//// /,///,//// /,//// /,//// //,//// /,//// /,//// /,////
5. Mr.ChalayKunawong //,//// //,//// //,//// //,//// //,//// //,//// //,////
6. Mr.UpathumNisitsukcharoen //
7. Ms.PiyamartYongsirichaisakul ///
8. Ms.PanitdaKlaimanee ///
9. Ms.JutipornMingkwanrungrueng ///
10. Mr.MongkolSilthumpitug ///
11. Ms.WannaIssarangkulNaAyutaya ///
12. Ms.ThanapornPhetluan ///
13. Ms.ChanasaDermsombull ///
Remark/=Chairman//=Committee///=ExecutiveManagement////=Directorswhohaveauthorizetosign/////=AuditCommittee
InformationofSubsidiariesasatDecember31,2018
Subsidiaries Join venture
PM The Exposition Momentum Muse Bayon CM CMO
Center Eyes Technology S Corporation Imaginia Organizer Show Crop
Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd. Co., Ltd.
1. Mr.SermkhunKunawong /,//// /,//// //,//// /,//// /,//// /,//// //,///,//// //,////
2. Mr.ChalayKunawong //,//// //,//// //,//// //,//// //,//// //,////
3. Mr.PratheepPooranawatanakul //,////
4. Ms.DarasriPooranawatanakul //,////
5. Ms.PannatornBoonmahitthisud //,////
6. Mr.AkawutSiriruk //,////
7. Ms.NuttigaSoontorncharoennont //,////
8. Ms.Sira-aiRujipapisit //,////
9. Ms.MuanfanSirikornKunawong //,////
10.Mr.GohSooSing //,////
11.Mr.KarlJamornmarn //,////
12.Ms.ChoongLeeMei //,////
Remark/=Chairman//=Committee///=ExecutiveManagement////=Directorswhohaveauthorizetosign/////=AuditCommittee
*Onclosingprocess
Attachment 2
NameName
178 179Annual Report 2018 CMO Public Company Limited